Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 23, 2020 | |
Entity Information [Line Items] | ||
Entity Incorporation, State or Country Code | TX | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Registrant Name | CENTERPOINT ENERGY INC. | |
Entity Central Index Key | 0001130310 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 544,821,120 | |
Entity Current Reporting Status | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 1-31447 | |
Entity Tax Identification Number | 74-0694415 | |
Entity Address, Address Line One | 1111 Louisiana | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 713 | |
Local Phone Number | 207-1111 | |
Houston Electric [Member] | ||
Entity Information [Line Items] | ||
Entity Incorporation, State or Country Code | TX | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Registrant Name | CENTERPOINT ENERGY HOUSTON ELECTRIC LLC | |
Entity Central Index Key | 0000048732 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 1,000 | |
Entity Current Reporting Status | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Tax Identification Number | 22-3865106 | |
Entity Address, Address Line One | 1111 Louisiana | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 713 | |
Local Phone Number | 207-1111 | |
CERC Corp [Member] | ||
Entity Information [Line Items] | ||
Entity Incorporation, State or Country Code | DE | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Registrant Name | CENTERPOINT ENERGY RESOURCES CORP | |
Entity Central Index Key | 0001042773 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 1,000 | |
Entity Current Reporting Status | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Tax Identification Number | 76-0511406 | |
Entity Address, Address Line One | 1111 Louisiana | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 713 | |
Local Phone Number | 207-1111 | |
Common Stock, $0.01 Par Value [Member] | New York Stock Exchange [Member] | ||
Entity Information [Line Items] | ||
Trading Symbol | CNP | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Security Exchange Name | NYSE | |
Common Stock, $0.01 Par Value [Member] | Chicago Stock Exchange [Member] | ||
Entity Information [Line Items] | ||
Trading Symbol | CNP | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Security Exchange Name | CHX | |
Depositary shares [Member] | New York Stock Exchange [Member] | ||
Entity Information [Line Items] | ||
Trading Symbol | CNP/PB | |
Title of 12(b) Security | Depositary Shares for 1/20 of 7.00% Series B Mandatory Convertible Preferred Stock, $0.01 par value | |
Security Exchange Name | NYSE | |
9.15% First Mortgage Bonds due 2021 [Member] | New York Stock Exchange [Member] | Houston Electric [Member] | ||
Entity Information [Line Items] | ||
Trading Symbol | n/a | |
Title of 12(b) Security | 9.15% First Mortgage Bonds due 2021 | |
Security Exchange Name | NYSE | |
6.95% General Mortgage Bonds due 2033 [Member] | New York Stock Exchange [Member] | Houston Electric [Member] | ||
Entity Information [Line Items] | ||
Trading Symbol | n/a | |
Title of 12(b) Security | 6.95% General Mortgage Bonds due 2033 | |
Security Exchange Name | NYSE | |
6.625% Senior Notes due 2037 [Member] | New York Stock Exchange [Member] | CERC Corp [Member] | ||
Entity Information [Line Items] | ||
Trading Symbol | n/a | |
Title of 12(b) Security | 6.625% Senior Notes due 2037 | |
Security Exchange Name | NYSE |
CONDENSED STATEMENTS OF CONSOLI
CONDENSED STATEMENTS OF CONSOLIDATED INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||||
Utility revenues | $ 1,538 | $ 1,548 | $ 5,087 | $ 5,284 |
Non-utility revenues | 84 | 110 | 277 | 261 |
Total | 1,622 | 1,658 | 5,364 | 5,545 |
Expenses: | ||||
Utility natural gas, fuel and purchased power | 170 | 171 | 981 | 1,228 |
Non-utility cost of revenues, including natural gas | 63 | 80 | 196 | 188 |
Operation and maintenance | 659 | 621 | 1,976 | 2,042 |
Depreciation and amortization | 306 | 316 | 885 | 938 |
Taxes other than income taxes | 122 | 113 | 387 | 352 |
Goodwill Impairment | 0 | 0 | 185 | 0 |
Total | 1,320 | 1,301 | 4,610 | 4,748 |
Operating Income | 302 | 357 | 754 | 797 |
Other Income (Expense): | ||||
Gain on marketable securities | 83 | 59 | 14 | 206 |
Loss on indexed debt securities | (84) | (62) | (25) | (216) |
Interest expense and other finance charges | (121) | (134) | (388) | (389) |
Interest expense on Securitization Bonds | (7) | (9) | (22) | (31) |
Equity in earnings (loss) of unconsolidated affiliates, net | (67) | 77 | (1,499) | 213 |
Interest Income | 1 | 3 | 2 | 16 |
Interest income from Securitization Bonds | 0 | 1 | 1 | 4 |
Other income (expense), net | 10 | 5 | 44 | 20 |
Total | (185) | (60) | (1,873) | (177) |
Income (Loss) from Continuing Operations before Income Taxes | 117 | 297 | (1,119) | 620 |
Income tax expense (benefit) | (10) | 46 | (328) | 75 |
Income (Loss) from Continuing Operations | 127 | 251 | (791) | 545 |
Income (Loss) from Discontinued Operations | (6) | 19 | (182) | 89 |
Net Income (Loss) | 121 | 270 | (973) | 634 |
Income allocated to preferred shareholders | 52 | 29 | 127 | 88 |
Income (Loss) Available to Common Shareholders | $ 69 | $ 241 | $ (1,100) | $ 546 |
Basic earnings (loss) per common share - continuing operations | $ 0.14 | $ 0.44 | $ (1.75) | $ 0.91 |
Basic earnings (loss) per common share - discontinued operations | (0.01) | 0.04 | (0.35) | 0.18 |
Basic Earnings (Loss) Per Common Share | 0.13 | 0.48 | (2.10) | 1.09 |
Earnings Per Share, Diluted [Abstract] | ||||
Diluted earnings (loss) per common share - continuing operations | 0.14 | 0.44 | (1.75) | 0.91 |
Diluted earnings (loss) per common share - discontinued operations | (0.01) | 0.03 | (0.35) | 0.17 |
Diluted Earnings (Loss) Per Common Share | $ 0.13 | $ 0.47 | $ (2.10) | $ 1.08 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share [Abstract] | ||||
Discontinued Operation, Tax Effect of Discontinued Operation | $ 0 | $ 16 | $ 21 | $ 38 |
Weighted Average Common Shares Outstanding, Basic | 544,811,000 | 502,228,000 | 525,160,000 | 501,986,000 |
Weighted Average Common Shares Outstanding, Diluted | 548,188,000 | 505,080,000 | 525,160,000 | 504,838,000 |
Houston Electric [Member] | ||||
Revenues: | ||||
Total | $ 828 | $ 859 | $ 2,182 | $ 2,310 |
Expenses: | ||||
Operation and maintenance | 381 | 359 | 1,104 | 1,086 |
Depreciation and amortization | 151 | 168 | 420 | 519 |
Taxes other than income taxes | 64 | 63 | 192 | 186 |
Total | 596 | 590 | 1,716 | 1,791 |
Operating Income | 232 | 269 | 466 | 519 |
Other Income (Expense): | ||||
Interest expense and other finance charges | (43) | (41) | (127) | (123) |
Interest expense on Securitization Bonds | (7) | (9) | (22) | (31) |
Interest Income | 1 | 8 | 2 | 18 |
Interest income from Securitization Bonds | 0 | 1 | 1 | 4 |
Other income (expense), net | 0 | (2) | 4 | (5) |
Total | (49) | (43) | (142) | (137) |
Income (Loss) from Continuing Operations before Income Taxes | 183 | 226 | 324 | 382 |
Income tax expense (benefit) | 26 | 41 | 47 | 70 |
Net Income (Loss) | 157 | 185 | 277 | 312 |
CERC Corp [Member] | ||||
Revenues: | ||||
Utility revenues | 415 | 398 | 1,878 | 2,106 |
Non-utility revenues | 11 | 22 | 42 | 52 |
Total | 426 | 420 | 1,920 | 2,158 |
Expenses: | ||||
Utility natural gas, fuel and purchased power | 106 | 105 | 715 | 978 |
Non-utility cost of revenues, including natural gas | 2 | 11 | 15 | 29 |
Operation and maintenance | 186 | 181 | 574 | 608 |
Depreciation and amortization | 78 | 72 | 226 | 218 |
Taxes other than income taxes | 40 | 33 | 134 | 120 |
Total | 412 | 402 | 1,664 | 1,953 |
Operating Income | 14 | 18 | 256 | 205 |
Other Income (Expense): | ||||
Interest expense and other finance charges | (28) | (28) | (87) | (87) |
Interest Income | 0 | 1 | 0 | 4 |
Other income (expense), net | (1) | (4) | (5) | (10) |
Total | (29) | (31) | (92) | (93) |
Income (Loss) from Continuing Operations before Income Taxes | (15) | (13) | 164 | 112 |
Income tax expense (benefit) | (9) | (3) | 22 | 10 |
Income (Loss) from Continuing Operations | (6) | (10) | 142 | 102 |
Income (Loss) from Discontinued Operations | 2 | 3 | (66) | 57 |
Net Income (Loss) | (4) | (7) | 76 | 159 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share [Abstract] | ||||
Discontinued Operation, Tax Effect of Discontinued Operation | $ 1 | $ 2 | $ (2) | $ 15 |
CONDENSED STATEMENTS OF CONSO_2
CONDENSED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net income (Loss) | $ 121 | $ 270 | $ (973) | $ 634 |
Other comprehensive income (loss): | ||||
Adjustment to pension and other postretirement plans, net of tax | 1 | 2 | 3 | 5 |
Net deferred gain (loss) from cash flow hedges, net of tax | 0 | (2) | 0 | (3) |
Reclassification of deferred loss from cash flow hedges realized in net income | 0 | 0 | 0 | 1 |
Reclassification of net deferred losses from cash flow hedges | 0 | 0 | 15 | 0 |
Other comprehensive income (loss) from unconsolidated affiliates | 1 | (2) | (2) | (2) |
Total | 2 | (2) | 16 | 1 |
Comprehensive Income Net of Tax Before Preferred Stock Dividend | 123 | 268 | (957) | 635 |
Income allocated to preferred shareholders | 52 | 29 | 127 | 88 |
Comprehensive income (loss) | 71 | 239 | (1,084) | 547 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent | 1 | 0 | 3 | 2 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 0 | 0 | 0 | 0 |
Tax benefit (expense) on Other Comprehensive lncome (loss) from unconsolidated affiliates | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | 0 | 0 | 4 | 0 |
Houston Electric [Member] | ||||
Net income (Loss) | 157 | 185 | 277 | 312 |
Other comprehensive income (loss): | ||||
Net deferred gain (loss) from cash flow hedges, net of tax | 0 | 0 | 0 | (1) |
Reclassification of net deferred losses from cash flow hedges | 0 | 0 | 15 | 0 |
Total | 0 | 0 | 15 | (1) |
Comprehensive income (loss) | 157 | 185 | 292 | 311 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | 0 | 0 | 4 | 0 |
CERC Corp [Member] | ||||
Net income (Loss) | (4) | (7) | 76 | 159 |
Other comprehensive income (loss): | ||||
Total | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | $ (4) | $ (7) | $ 76 | $ 159 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 185 | $ 241 |
Investment in marketable securities | 836 | 822 |
Accounts receivable, less bad debt reserve | 731 | 702 |
Bad debt reserve | 47 | 21 |
Accrued unbilled revenues, less bad debt reserve | 284 | 469 |
Accrued Unbilled Revenues, Allowance for Credit Losses, Current | 2 | 0 |
Natural gas inventory | 234 | 209 |
Materials and supplies | 300 | 263 |
Taxes receivable | 102 | 106 |
Current assets held for sale | 0 | 1,002 |
Prepaid expenses and other current assets | 113 | 123 |
Total current assets | 2,785 | 3,937 |
Property, Plant and Equipment: | ||
Property, plant and equipment | 31,823 | 30,324 |
Less: accumulated depreciation and amortization | 10,088 | 9,700 |
Property, plant and equipment, net | 21,735 | 20,624 |
Other Assets: | ||
Goodwill | 4,697 | 4,882 |
Regulatory assets | 2,150 | 2,117 |
Investment in unconsolidated affiliates | 749 | 2,408 |
Preferred units – unconsolidated affiliate | 363 | 363 |
Total non-current assets held for sale | 0 | 962 |
Other | 226 | 236 |
Total other assets | 8,185 | 10,968 |
Total Assets | 32,705 | 35,529 |
Current Liabilities: | ||
Short-term borrowings | 37 | 0 |
Current portion of VIE Securitization Bonds long-term debt | 208 | 231 |
Indexed debt, net | 16 | 19 |
Current portion of other long-term debt | 1,114 | 618 |
Indexed debt securities derivative | 918 | 893 |
Accounts payable | 658 | 884 |
Taxes accrued | 212 | 239 |
Interest accrued | 117 | 158 |
Customer deposits | 120 | 124 |
Non-trading derivative liabilities | 1 | 7 |
Current liabilities held for sale | 0 | 455 |
Other | 429 | 350 |
Total current liabilities | 3,830 | 3,978 |
Other Liabilities: | ||
Deferred income taxes, net | 3,575 | 3,928 |
Non-trading derivative liabilities | 6 | 15 |
Benefit obligations | 691 | 750 |
Regulatory liabilities | 3,480 | 3,474 |
Total non-current liabilities held for sale | 0 | 43 |
Other | 789 | 738 |
Total other liabilities | 8,541 | 8,948 |
Long-term Debt: | ||
VIE Securitization Bonds, net | 610 | 746 |
Other long-term debt, net | 11,336 | 13,498 |
Total long-term debt, net | 11,946 | 14,244 |
Commitments and Contingencies (Note 14) | ||
Shareholders’ Equity: | ||
Cumulative preferred stock, $0.01 par value, 20,000,000 shares authorized | ||
Preferred Stock, Shares Authorized | 20,000,000 | |
Common stock | $ 5 | $ 5 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Outstanding | 544,819,895 | 502,242,061 |
Additional paid-in capital | $ 6,805 | $ 6,080 |
Retained earnings (accumulated deficit) | (796) | 632 |
Accumulated other comprehensive income (loss) | (82) | (98) |
Total shareholders’ equity | 8,388 | 8,359 |
Total Liabilities and Shareholders’ Equity | 32,705 | 35,529 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Current Assets: | ||
Cash and cash equivalents | 172 | 216 |
Accounts receivable, less bad debt reserve | 30 | 26 |
Prepaid expenses and other current assets | 16 | 19 |
Other Assets: | ||
Regulatory assets | 669 | 788 |
Houston Electric [Member] | ||
Current Assets: | ||
Cash and cash equivalents | 172 | 216 |
Bad debt reserve | 1 | 1 |
Accounts and notes receivable, less bad debt reserve | 367 | 238 |
Accounts and notes receivable–affiliated companies | 41 | 523 |
Accrued unbilled revenues, less bad debt reserve | 124 | 117 |
Materials and supplies | 182 | 147 |
Prepaid expenses and other current assets | 32 | 49 |
Total current assets | 918 | 1,290 |
Property, Plant and Equipment: | ||
Property, plant and equipment | 13,354 | 12,829 |
Less: accumulated depreciation and amortization | 3,875 | 3,797 |
Property, plant and equipment, net | 9,479 | 9,032 |
Other Assets: | ||
Regulatory assets | 873 | 915 |
Other | 26 | 25 |
Total other assets | 899 | 940 |
Total Assets | 11,296 | 11,262 |
Current Liabilities: | ||
Short-term borrowings | 5 | 0 |
Current portion of VIE Securitization Bonds long-term debt | 208 | 231 |
Current portion of other long-term debt | 402 | 0 |
Accounts payable | 256 | 268 |
Accounts and notes payable–affiliated companies | 60 | 76 |
Taxes accrued | 155 | 123 |
Interest accrued | 45 | 69 |
Other | 127 | 63 |
Total current liabilities | 1,258 | 830 |
Other Liabilities: | ||
Deferred income taxes, net | 1,029 | 1,030 |
Benefit obligations | 72 | 75 |
Regulatory liabilities | 1,285 | 1,288 |
Other | 87 | 69 |
Total other liabilities | 2,473 | 2,462 |
Long-term Debt: | ||
VIE Securitization Bonds, net | 610 | 746 |
Other long-term debt, net | 3,869 | 3,973 |
Total long-term debt, net | 4,479 | 4,719 |
Commitments and Contingencies (Note 14) | ||
Shareholders’ Equity: | ||
Common stock | 0 | 0 |
Additional paid-in capital | 2,486 | 2,486 |
Retained earnings (accumulated deficit) | 600 | 780 |
Accumulated other comprehensive income (loss) | 0 | (15) |
Total shareholders’ equity | 3,086 | 3,251 |
Total Liabilities and Shareholders’ Equity | 11,296 | 11,262 |
Houston Electric [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Current Assets: | ||
Cash and cash equivalents | 172 | 216 |
Accounts receivable, less bad debt reserve | 30 | 26 |
Prepaid expenses and other current assets | 16 | 19 |
Other Assets: | ||
Regulatory assets | 669 | 788 |
CERC Corp [Member] | ||
Current Assets: | ||
Cash and cash equivalents | 2 | 2 |
Accounts receivable, less bad debt reserve | 231 | 322 |
Bad debt reserve | 39 | 15 |
Accounts and notes receivable–affiliated companies | 14 | 10 |
Accrued unbilled revenues, less bad debt reserve | 90 | 249 |
Accrued Unbilled Revenues, Allowance for Credit Losses, Current | 1 | 0 |
Natural gas inventory | 152 | 135 |
Materials and supplies | 68 | 71 |
Current assets held for sale | 0 | 691 |
Prepaid expenses and other current assets | 11 | 9 |
Total current assets | 568 | 1,489 |
Property, Plant and Equipment: | ||
Property, plant and equipment | 8,608 | 8,079 |
Less: accumulated depreciation and amortization | 2,408 | 2,270 |
Property, plant and equipment, net | 6,200 | 5,809 |
Other Assets: | ||
Goodwill | 757 | 757 |
Regulatory assets | 206 | 191 |
Total non-current assets held for sale | 0 | 213 |
Other | 48 | 53 |
Total other assets | 1,011 | 1,214 |
Total Assets | 7,779 | 8,512 |
Current Liabilities: | ||
Short-term borrowings | 31 | 0 |
Accounts payable | 191 | 333 |
Accounts and notes payable–affiliated companies | 44 | 47 |
Taxes accrued | 68 | 84 |
Interest accrued | 31 | 38 |
Customer deposits | 76 | 74 |
Current liabilities held for sale | 0 | 368 |
Other | 165 | 167 |
Total current liabilities | 606 | 1,111 |
Other Liabilities: | ||
Deferred income taxes, net | 509 | 470 |
Benefit obligations | 84 | 80 |
Regulatory liabilities | 1,216 | 1,219 |
Total non-current liabilities held for sale | 0 | 27 |
Other | 437 | 418 |
Total other liabilities | 2,246 | 2,214 |
Long-term Debt: | ||
Total long-term debt, net | 2,582 | 2,546 |
Commitments and Contingencies (Note 14) | ||
Shareholders’ Equity: | ||
Common stock | 0 | 0 |
Additional paid-in capital | 1,829 | 2,116 |
Retained earnings (accumulated deficit) | 506 | 515 |
Accumulated other comprehensive income (loss) | 10 | 10 |
Total shareholders’ equity | 2,345 | 2,641 |
Total Liabilities and Shareholders’ Equity | $ 7,779 | $ 8,512 |
Series A Preferred Stock [Member] | ||
Shareholders’ Equity: | ||
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock aggregate liquidation preference | $ 800 | $ 800 |
Preferred stock outstanding (in shares) | 800,000 | 800,000 |
Preferred Stock, $0.01 par value | $ 790 | $ 790 |
Series B Preferred Stock [Member] | ||
Shareholders’ Equity: | ||
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock aggregate liquidation preference | $ 978 | $ 978 |
Preferred stock outstanding (in shares) | 977,500 | 977,500 |
Preferred Stock, $0.01 par value | $ 950 | $ 950 |
Series C Preferred Stock [Member] | ||
Shareholders’ Equity: | ||
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock aggregate liquidation preference | $ 725 | $ 725 |
Preferred stock outstanding (in shares) | 725,000 | 725,000 |
Preferred Stock, $0.01 par value | $ 716 | $ 0 |
Cumulative Preferred Stock | ||
Shareholders’ Equity: | ||
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 |
CONDENSED STATEMENTS OF CONSO_3
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ (973) | $ 634 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 885 | 938 |
Depreciation and amortization on assets held for sale | 0 | 49 |
Amortization of deferred financing costs | 23 | 22 |
Amortization of intangible assets in non-utility cost of revenues | 1 | 19 |
Deferred income taxes | (429) | 8 |
Goodwill impairment and loss from reclassification to held for sale | 175 | 0 |
Goodwill Impairment | 185 | 0 |
Unrealized loss (gain) on marketable securities | (14) | (206) |
Loss (gain) on indexed debt securities | 25 | 216 |
Write-down of natural gas inventory | 3 | 5 |
Equity in (earnings) losses of unconsolidated affiliates | 1,499 | (213) |
Distributions from unconsolidated affiliates | 109 | 226 |
Pension contributions | (84) | (94) |
Changes in other assets and liabilities, excluding acquisitions: | ||
Accounts receivable and unbilled revenues, net | 326 | 521 |
Inventory | (50) | (85) |
Taxes receivable | 4 | (69) |
Accounts payable | (251) | (646) |
Fuel cost recovery | (5) | 68 |
Non-trading derivatives, net | (14) | (66) |
Margin deposits, net | 65 | (33) |
Interest and taxes accrued | (53) | (89) |
Net regulatory assets and liabilities | (76) | (101) |
Other current assets | 6 | 31 |
Other current liabilities | 30 | (118) |
Other assets | 5 | 81 |
Other liabilities | 46 | (22) |
Other operating activities, net | 1 | 10 |
Net cash provided by operating activities from continuing operations | 1,439 | 1,086 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (1,889) | (1,822) |
Acquisitions, net of cash acquired | 0 | (5,991) |
Distributions from unconsolidated affiliate in excess of cumulative earnings | 46 | 0 |
Proceeds from divestitures (Note 3) | 1,136 | 0 |
Other investing activities, net | 24 | 38 |
Net cash used in investing activities from continuing operations | (683) | (7,775) |
Cash Flows from Financing Activities: | ||
Increase in short-term borrowings, net | 37 | 0 |
Proceeds from (payments of) commercial paper, net | (1,057) | 1,584 |
Proceeds from long-term debt, net | 299 | 2,916 |
Payments of long-term debt | (1,060) | (1,225) |
Payment of debt issuance costs | (4) | (19) |
Payment of dividends on Common Stock | (309) | (433) |
Payment of dividends on Preferred Stock | (114) | (101) |
Proceeds from issuance of Common Stock, net | 672 | 0 |
Proceeds from issuance of Series C Preferred Stock, net | 723 | 0 |
Other financing activities, net | (6) | (14) |
Net cash provided by (used in) financing activities from continuing operations | (819) | 2,708 |
Net Decrease in Cash, Cash Equivalents and Restricted Cash | (63) | (3,981) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 271 | 4,278 |
Cash, Cash Equivalents and Restricted Cash at End of Period | 208 | 297 |
Houston Electric [Member] | ||
Cash Flows from Operating Activities: | ||
Net income (loss) | 277 | 312 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 420 | 519 |
Amortization of deferred financing costs | 8 | 8 |
Deferred income taxes | (36) | (39) |
Changes in other assets and liabilities, excluding acquisitions: | ||
Accounts receivable and unbilled revenues, net | (145) | (84) |
Accounts receivable/payable–affiliated companies | 10 | (7) |
Inventory | (35) | (9) |
Taxes receivable | 0 | 5 |
Accounts payable | (7) | 3 |
Non-trading derivatives, net | 15 | (25) |
Interest and taxes accrued | 16 | (28) |
Net regulatory assets and liabilities | 5 | (58) |
Other current assets | 13 | 15 |
Other current liabilities | 21 | (3) |
Other assets | (5) | 8 |
Other liabilities | 6 | (13) |
Other operating activities, net | (11) | (9) |
Net cash provided by operating activities from continuing operations | 552 | 595 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (750) | (744) |
Decrease (increase) in notes receivable–affiliated companies | 456 | (772) |
Other investing activities, net | 11 | 12 |
Net cash used in investing activities from continuing operations | (283) | (1,504) |
Cash Flows from Financing Activities: | ||
Increase in short-term borrowings, net | 5 | 0 |
Proceeds from long-term debt, net | 299 | 696 |
Payments of long-term debt | (160) | (390) |
Decrease in notes payable–affiliated companies | 0 | (1) |
Dividend to parent | (457) | (100) |
Contribution from parent | 0 | 590 |
Capital distribution to parent associated with the sale of CES | 0 | 0 |
Payment of debt issuance costs | (3) | (8) |
Other financing activities, net | 0 | (1) |
Net cash provided by (used in) financing activities from continuing operations | (316) | 786 |
Net Decrease in Cash, Cash Equivalents and Restricted Cash | (47) | (123) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 235 | 370 |
Cash, Cash Equivalents and Restricted Cash at End of Period | 188 | 247 |
CERC Corp [Member] | ||
Cash Flows from Operating Activities: | ||
Net income (loss) | 76 | 159 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 226 | 218 |
Depreciation and amortization on assets held for sale | 0 | 10 |
Amortization of deferred financing costs | 7 | 8 |
Deferred income taxes | 19 | 26 |
Goodwill impairment and loss from reclassification to held for sale | 93 | 0 |
Write-down of natural gas inventory | 3 | 5 |
Changes in other assets and liabilities, excluding acquisitions: | ||
Accounts receivable and unbilled revenues, net | 402 | 653 |
Accounts receivable/payable–affiliated companies | (8) | (9) |
Inventory | (3) | (47) |
Taxes receivable | 0 | 4 |
Accounts payable | (180) | (458) |
Fuel cost recovery | (5) | 68 |
Non-trading derivatives, net | (13) | (60) |
Margin deposits, net | 65 | (33) |
Interest and taxes accrued | (18) | (23) |
Net regulatory assets and liabilities | (23) | (1) |
Other current assets | 4 | 11 |
Other current liabilities | (7) | (9) |
Other assets | 7 | (3) |
Other liabilities | 8 | 2 |
Other operating activities, net | (7) | 0 |
Net cash provided by operating activities from continuing operations | 646 | 513 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (624) | (546) |
Decrease (increase) in notes receivable–affiliated companies | (9) | 27 |
Proceeds from divestitures (Note 3) | 286 | 0 |
Other investing activities, net | 8 | 4 |
Net cash used in investing activities from continuing operations | (339) | (515) |
Cash Flows from Financing Activities: | ||
Increase in short-term borrowings, net | 31 | 0 |
Proceeds from (payments of) commercial paper, net | 30 | 100 |
Dividend to parent | (80) | (119) |
Contribution from parent | 0 | 0 |
Capital distribution to parent associated with the sale of CES | (286) | 0 |
Other financing activities, net | (2) | (2) |
Net cash provided by (used in) financing activities from continuing operations | (307) | (21) |
Net Decrease in Cash, Cash Equivalents and Restricted Cash | 0 | (23) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 2 | 25 |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 2 | $ 2 |
CONDENSED STATEMENTS OF CONSO_4
CONDENSED STATEMENTS OF CONSOLIDATED CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series C Preferred Stock [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Series A Preferred Stock [Member] | Retained Earnings [Member]Series B Preferred Stock [Member] | Retained Earnings [Member]Series C Preferred Stock [Member] | AOCI Attributable to Parent [Member] | CERC Corp [Member] | CERC Corp [Member]Common Stock [Member] | CERC Corp [Member]Additional Paid-in Capital [Member] | CERC Corp [Member]Retained Earnings [Member] | CERC Corp [Member]AOCI Attributable to Parent [Member] | Houston Electric [Member] | Houston Electric [Member]Common Stock [Member] | Houston Electric [Member]Additional Paid-in Capital [Member] | Houston Electric [Member]Retained Earnings [Member] | Houston Electric [Member]AOCI Attributable to Parent [Member] |
Balance, beginning of period at Dec. 31, 2018 | 2,000,000 | ||||||||||||||||||||||
Balance, end of period at Sep. 30, 2019 | 2,000,000 | ||||||||||||||||||||||
Balance, beginning of period at Dec. 31, 2018 | 501,000,000 | 1,000 | 1,000 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Issuances related to benefit and investment plans | 1,000,000 | ||||||||||||||||||||||
Balance, end of period at Sep. 30, 2019 | 502,000,000 | 1,000 | 1,000 | ||||||||||||||||||||
Balance, beginning of period at Dec. 31, 2018 | $ 1,740 | $ 5 | $ 6,072 | $ 349 | $ (108) | $ 0 | $ 2,015 | $ 423 | $ 5 | $ 0 | $ 1,896 | $ 800 | $ (14) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Other | 0 | ||||||||||||||||||||||
Issuance of stock, shares | 0 | 0 | |||||||||||||||||||||
Issuances of stock, net of issuance costs | $ 0 | $ 0 | 0 | ||||||||||||||||||||
Issuances related to benefit and investment plans | 0 | 0 | |||||||||||||||||||||
Recognition of beneficial conversion feature | $ 0 | 0 | $ 0 | $ 0 | |||||||||||||||||||
Contribution From Parent | 0 | 590 | |||||||||||||||||||||
Net income (Loss) | 634 | 634 | 159 | 159 | 312 | 312 | |||||||||||||||||
Common Stock dividends declared (see Note 19) | $ (433) | (289) | |||||||||||||||||||||
Preferred Stock dividends declared (see Note 19) | $ (50) | $ (51) | $ (24) | $ (34) | $ 0 | ||||||||||||||||||
Amortization of Beneficial Conversion Feature | 0 | 0 | 0 | 0 | |||||||||||||||||||
Dividend to parent | (119) | (100) | |||||||||||||||||||||
Adoption of ASU 2016-13 | Accounting Standards Update 2016-13 [Member] | 0 | 0 | |||||||||||||||||||||
Other comprehensive income (loss) | 1 | (1) | |||||||||||||||||||||
Balance, end of period at Sep. 30, 2019 | 8,346 | $ 1,740 | $ 5 | 6,072 | 636 | (107) | 2,483 | $ 0 | 2,015 | 463 | 5 | 3,483 | $ 0 | 2,486 | 1,012 | (15) | |||||||
Balance, beginning of period at Jun. 30, 2019 | 2,000,000 | ||||||||||||||||||||||
Balance, end of period at Sep. 30, 2019 | 2,000,000 | ||||||||||||||||||||||
Balance, beginning of period at Jun. 30, 2019 | 502,000,000 | 1,000 | 1,000 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Issuances related to benefit and investment plans | 0 | ||||||||||||||||||||||
Balance, end of period at Sep. 30, 2019 | 502,000,000 | 1,000 | 1,000 | ||||||||||||||||||||
Balance, beginning of period at Jun. 30, 2019 | $ 1,740 | $ 5 | 6,065 | 552 | (105) | $ 0 | 2,015 | 486 | 5 | $ 0 | 2,486 | 887 | (15) | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Other | 0 | ||||||||||||||||||||||
Issuance of stock, shares | 0 | 0 | |||||||||||||||||||||
Issuances of stock, net of issuance costs | $ 0 | $ 0 | 0 | ||||||||||||||||||||
Issuances related to benefit and investment plans | 0 | 7 | |||||||||||||||||||||
Recognition of beneficial conversion feature | 0 | ||||||||||||||||||||||
Contribution From Parent | 0 | 0 | |||||||||||||||||||||
Net income (Loss) | 270 | 270 | (7) | (7) | 185 | 185 | |||||||||||||||||
Common Stock dividends declared (see Note 19) | (145) | ||||||||||||||||||||||
Preferred Stock dividends declared (see Note 19) | (24) | (17) | 0 | ||||||||||||||||||||
Amortization of Beneficial Conversion Feature | 0 | 0 | |||||||||||||||||||||
Dividend to parent | (16) | (60) | |||||||||||||||||||||
Adoption of ASU 2016-13 | Accounting Standards Update 2016-13 [Member] | 0 | 0 | |||||||||||||||||||||
Other comprehensive income (loss) | (2) | 0 | |||||||||||||||||||||
Balance, end of period at Sep. 30, 2019 | $ 8,346 | $ 1,740 | $ 5 | 6,072 | 636 | (107) | 2,483 | $ 0 | 2,015 | 463 | 5 | 3,483 | $ 0 | 2,486 | 1,012 | (15) | |||||||
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||||
Preferred Stock, Shares Authorized | 20,000,000 | ||||||||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | ||||||||||||||||||||||
Common Stock, Shares Authorized | 1,000,000,000 | ||||||||||||||||||||||
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | ||||||||||||||||||||||
Common Stock, Shares Authorized | 1,000,000,000 | ||||||||||||||||||||||
Balance, beginning of period at Dec. 31, 2019 | 800,000 | 977,500 | 725,000 | 2,000,000 | |||||||||||||||||||
Balance, end of period at Sep. 30, 2020 | 800,000 | 977,500 | 725,000 | 3,000,000 | |||||||||||||||||||
Balance, beginning of period at Dec. 31, 2019 | 502,242,061 | 502,000,000 | 1,000 | 1,000 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Issuances related to benefit and investment plans | 1,000,000 | ||||||||||||||||||||||
Balance, end of period at Sep. 30, 2020 | 544,819,895 | 545,000,000 | 1,000 | 1,000 | |||||||||||||||||||
Balance, beginning of period at Dec. 31, 2019 | $ 8,359 | $ 1,740 | $ 5 | 6,080 | 632 | (98) | 2,641 | $ 0 | 2,116 | 515 | 10 | 3,251 | $ 0 | 2,486 | 780 | (15) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Other | (1) | ||||||||||||||||||||||
Issuance of stock, shares | 42,000,000 | 1,000,000 | |||||||||||||||||||||
Issuances of stock, net of issuance costs | $ 0 | $ 716 | 672 | ||||||||||||||||||||
Issuances related to benefit and investment plans | 0 | 21 | |||||||||||||||||||||
Recognition of beneficial conversion feature | (32) | (32) | 0 | 0 | |||||||||||||||||||
Contribution From Parent | 286 | 0 | |||||||||||||||||||||
Net income (Loss) | (973) | (973) | 76 | 76 | 277 | 277 | |||||||||||||||||
Common Stock dividends declared (see Note 19) | $ (309) | (309) | |||||||||||||||||||||
Preferred Stock dividends declared (see Note 19) | $ (49) | $ (51) | $ (14) | (49) | (51) | (14) | |||||||||||||||||
Amortization of Beneficial Conversion Feature | (25) | (25) | 0 | 0 | |||||||||||||||||||
Dividend to parent | (80) | (457) | |||||||||||||||||||||
Adoption of ASU 2016-13 | Accounting Standards Update 2016-13 [Member] | (7) | 5 | |||||||||||||||||||||
Other comprehensive income (loss) | 16 | 15 | |||||||||||||||||||||
Balance, end of period at Sep. 30, 2020 | $ 8,388 | $ 2,456 | $ 5 | 6,805 | (796) | (82) | 2,345 | $ 0 | 1,829 | 506 | 10 | 3,086 | $ 0 | 2,486 | 600 | 0 | |||||||
Balance, beginning of period at Jun. 30, 2020 | 3,000,000 | ||||||||||||||||||||||
Balance, end of period at Sep. 30, 2020 | 800,000 | 977,500 | 725,000 | 3,000,000 | |||||||||||||||||||
Balance, beginning of period at Jun. 30, 2020 | 545,000,000 | 1,000 | 1,000 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Issuances related to benefit and investment plans | 0 | ||||||||||||||||||||||
Balance, end of period at Sep. 30, 2020 | 544,819,895 | 545,000,000 | 1,000 | 1,000 | |||||||||||||||||||
Balance, beginning of period at Jun. 30, 2020 | $ 2,441 | $ 5 | 6,801 | (771) | (84) | $ 0 | 1,829 | 518 | 10 | $ 0 | 2,486 | 495 | 0 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Other | 0 | ||||||||||||||||||||||
Issuance of stock, shares | 0 | 0 | |||||||||||||||||||||
Issuances of stock, net of issuance costs | $ 0 | $ 15 | (1) | ||||||||||||||||||||
Issuances related to benefit and investment plans | 0 | 5 | |||||||||||||||||||||
Recognition of beneficial conversion feature | 0 | ||||||||||||||||||||||
Contribution From Parent | 0 | 0 | |||||||||||||||||||||
Net income (Loss) | $ 121 | 121 | (4) | (4) | 157 | 157 | |||||||||||||||||
Common Stock dividends declared (see Note 19) | (82) | ||||||||||||||||||||||
Preferred Stock dividends declared (see Note 19) | $ (24) | $ (17) | $ (7) | ||||||||||||||||||||
Amortization of Beneficial Conversion Feature | (16) | (16) | |||||||||||||||||||||
Dividend to parent | (8) | (52) | |||||||||||||||||||||
Adoption of ASU 2016-13 | Accounting Standards Update 2016-13 [Member] | 0 | 0 | |||||||||||||||||||||
Other comprehensive income (loss) | 2 | 0 | |||||||||||||||||||||
Balance, end of period at Sep. 30, 2020 | $ 8,388 | $ 2,456 | $ 5 | $ 6,805 | $ (796) | $ (82) | $ 2,345 | $ 0 | $ 1,829 | $ 506 | $ 10 | $ 3,086 | $ 0 | $ 2,486 | $ 600 | $ 0 | |||||||
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||||
Preferred Stock, Shares Authorized | 20,000,000 | ||||||||||||||||||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | ||||||||||||||||||||||
Common Stock, Shares Authorized | 1,000,000,000 |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosure of Cash Flow Information [Text Block] | Supplemental Disclosure of Cash Flow Information CenterPoint Energy and CERC elected not to separately disclose discontinued operations on their respective Condensed Statements of Consolidated Cash Flows. See Note 3 for certain supplemental cash flow disclosures related to the Infrastructure Services and Energy Services Disposal Groups. The table below provides supplemental disclosure of cash flow information and has not been recast to exclude the Infrastructure Services and Energy Services Disposal Groups prior to the closing of the respective transactions. Nine Months Ended September 30, 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Cash Payments/Receipts: Interest, net of capitalized interest $ 324 $ 176 $ 88 $ 364 $ 203 $ 88 Income tax payments, net 117 33 4 174 93 3 Nine Months Ended September 30, 2020 2019 Non-cash transactions: Accounts payable related to capital expenditures 220 121 72 178 91 75 ROU assets obtained in exchange for lease liabilities (1) 14 — 5 43 1 28 Beneficial conversion feature 32 — — — — — Amortization of beneficial conversion feature (25) — — — — — (1) 2019 includes the transition impact of adoption of ASU 2016-02 Leases. The table below provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheets to the amount reported in the Condensed Statements of Consolidated Cash Flows and has not been recast to exclude the Infrastructure Services and Energy Services Disposal Groups as of December 31, 2019. September 30, 2020 December 31, 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Cash and cash equivalents $ 185 $ 172 $ 2 $ 241 $ 216 $ 2 Restricted cash included in Prepaid expenses and other current assets 23 16 — 30 19 — Total cash, cash equivalents and restricted cash shown in Condensed Statements of Consolidated Cash Flows $ 208 $ 188 $ 2 $ 271 $ 235 $ 2 |
Supplemental Disclosure of Ca_2
Supplemental Disclosure of Cash Flow Information | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The table below provides supplemental disclosure of cash flow information and has not been recast to exclude the Infrastructure Services and Energy Services Disposal Groups prior to the closing of the respective transactions. Nine Months Ended September 30, 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Cash Payments/Receipts: Interest, net of capitalized interest $ 324 $ 176 $ 88 $ 364 $ 203 $ 88 Income tax payments, net 117 33 4 174 93 3 Nine Months Ended September 30, 2020 2019 Non-cash transactions: Accounts payable related to capital expenditures 220 121 72 178 91 75 ROU assets obtained in exchange for lease liabilities (1) 14 — 5 43 1 28 Beneficial conversion feature 32 — — — — — Amortization of beneficial conversion feature (25) — — — — — (1) 2019 includes the transition impact of adoption of ASU 2016-02 Leases. The table below provides a reconciliation of cash, cash equivalents and restricted cash reported in the Condensed Consolidated Balance Sheets to the amount reported in the Condensed Statements of Consolidated Cash Flows and has not been recast to exclude the Infrastructure Services and Energy Services Disposal Groups as of December 31, 2019. September 30, 2020 December 31, 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Cash and cash equivalents $ 185 $ 172 $ 2 $ 241 $ 216 $ 2 Restricted cash included in Prepaid expenses and other current assets 23 16 — 30 19 — Total cash, cash equivalents and restricted cash shown in Condensed Statements of Consolidated Cash Flows $ 208 $ 188 $ 2 $ 271 $ 235 $ 2 |
Supplemental Disclosure of Ca_3
Supplemental Disclosure of Cash Flow Information - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Interest, net of capitalized interest | $ 324 | $ 364 | ||||
Income tax payments, net | 117 | 174 | ||||
Accounts payable related to capital expenditures | 220 | 178 | ||||
ROU assets obtained in exchange for lease liabilities (1) | 14 | 43 | [1] | |||
Beneficial conversion feature | 32 | 0 | ||||
Amortization of Beneficial Conversion Feature | $ (16) | (25) | 0 | |||
Cash and Cash Equivalents, at Carrying Value | 185 | 185 | $ 241 | |||
Total cash, cash equivalents and restricted cash shown in Condensed Statements of Consolidated Cash Flows | 208 | 208 | 297 | 271 | $ 4,278 | |
Prepaid expenses and other current assets [Member] | ||||||
Restricted cash | 23 | 23 | 30 | |||
Houston Electric [Member] | ||||||
Interest, net of capitalized interest | 176 | 203 | ||||
Income tax payments, net | 33 | 93 | ||||
Accounts payable related to capital expenditures | 121 | 91 | ||||
ROU assets obtained in exchange for lease liabilities (1) | 0 | 1 | [1] | |||
Beneficial conversion feature | 0 | 0 | ||||
Amortization of Beneficial Conversion Feature | 0 | 0 | ||||
Cash and Cash Equivalents, at Carrying Value | 172 | 172 | 216 | |||
Total cash, cash equivalents and restricted cash shown in Condensed Statements of Consolidated Cash Flows | 188 | 188 | 247 | 235 | 370 | |
Houston Electric [Member] | Prepaid expenses and other current assets [Member] | ||||||
Restricted cash | 16 | 16 | 19 | |||
CERC Corp [Member] | ||||||
Interest, net of capitalized interest | 88 | 88 | ||||
Income tax payments, net | 4 | 3 | ||||
Accounts payable related to capital expenditures | 72 | 75 | ||||
ROU assets obtained in exchange for lease liabilities (1) | 5 | 28 | [1] | |||
Beneficial conversion feature | 0 | 0 | ||||
Amortization of Beneficial Conversion Feature | 0 | 0 | ||||
Cash and Cash Equivalents, at Carrying Value | 2 | 2 | 2 | |||
Total cash, cash equivalents and restricted cash shown in Condensed Statements of Consolidated Cash Flows | 2 | 2 | $ 2 | 2 | $ 25 | |
CERC Corp [Member] | Prepaid expenses and other current assets [Member] | ||||||
Restricted cash | $ 0 | $ 0 | $ 0 | |||
[1] | 2019 includes the transition impact of adoption of ASU 2016-02 Leases. |
Background and Basis of Present
Background and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation [Text Block] | Background and Basis of Presentation General. This combined Form 10-Q is filed separately by three registrants: CenterPoint Energy, Inc., CenterPoint Energy Houston Electric, LLC and CenterPoint Energy Resources Corp. Information contained herein relating to any individual registrant is filed by such registrant solely on its own behalf. Each registrant makes no representation as to information relating exclusively to the other Registrants or the subsidiaries of CenterPoint Energy other than itself or its subsidiaries. Except as discussed in the last paragraph in Note 12 to the Registrants’ Condensed Consolidated Financial Statements, no registrant has an obligation in respect of any other Registrant’s debt securities, and holders of such debt securities should not consider the financial resources or results of operations of any Registrant other than the obligor in making a decision with respect to such securities. Included in this combined Form 10-Q are the Interim Condensed Financial Statements of CenterPoint Energy, Houston Electric and CERC, which are referred to collectively as the Registrants. The Combined Notes to the Unaudited Condensed Consolidated Financial Statements apply to all Registrants and specific references to Houston Electric and CERC herein also pertain to CenterPoint Energy, unless otherwise indicated. The Interim Condensed Financial Statements are unaudited, omit certain financial statement disclosures and should be read with the Registrants’ financial statements included in the Registrants’ combined 2019 Form 10-K. Background. CenterPoint Energy, Inc. is a public utility holding company and owns interests in Enable as described below. As of September 30, 2020, CenterPoint Energy’s operating subsidiaries reported as continuing operations were as follows: • Houston Electric owns and operates electric transmission and distribution facilities in the Texas Gulf Coast area that includes the city of Houston. • CERC (i) owns and operates natural gas distribution systems in six states; (ii) owns and operates permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP; and (iii) provides temporary delivery of LNG and CNG throughout the contiguous 48 states through MES. • Vectren holds three public utilities through its wholly-owned subsidiary, VUHI, a public utility holding company: • Indiana Gas provides energy delivery services to natural gas customers located in central and southern Indiana; • SIGECO provides energy delivery services to electric and natural gas customers located near Evansville in southwestern Indiana and owns and operates electric generation assets to serve its electric customers and optimizes those assets in the wholesale power market; and • VEDO provides energy delivery services to natural gas customers located near Dayton in west-central Ohio. • Vectren performs non-utility activities through ESG, which provides energy performance contracting and sustainable infrastructure services, such as renewables, distributed generation and combined heat and power projects. As of September 30, 2020, CenterPoint Energy, indirectly through CNP Midstream, owned approximately 53.7% of the common units representing limited partner interests in Enable, 50% of the management rights and 40% of the incentive distribution rights in Enable GP and also directly owned an aggregate of 14,520,000 Enable Series A Preferred Units. Enable owns, operates and develops natural gas and crude oil infrastructure assets. As of September 30, 2020, CenterPoint Energy and Houston Electric had VIEs consisting of the Bond Companies, which are consolidated. The consolidated VIEs are wholly-owned, bankruptcy-remote, special purpose entities that were formed solely for the purpose of securitizing transition and system restoration-related property. Creditors of CenterPoint Energy and Houston Electric have no recourse to any assets or revenues of the Bond Companies. The bonds issued by these VIEs are payable only from and secured by transition and system restoration property, and the bondholders have no recourse to the general credit of CenterPoint Energy or Houston Electric. Basis of Presentation. The preparation of the Registrants’ financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Interim Condensed Financial Statements reflect all normal recurring adjustments that are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the respective periods. Amounts reported in the Condensed Statements of Consolidated Income are not necessarily indicative of amounts expected for a full-year period due to the effects of, among other things, (a) seasonal fluctuations in demand for energy and energy services, (b) changes in energy commodity prices, (c) timing of maintenance and other expenditures and (d) acquisitions and dispositions of businesses, assets and other interests. Certain prior year amounts have been reclassified to conform to the current year presentation. Discontinued Operations. On February 3, 2020, CenterPoint Energy, through its subsidiary VUSI, entered into the Securities Purchase Agreement to sell the Infrastructure Services Disposal Group, which provided underground pipeline construction and repair services through wholly-owned subsidiaries Miller Pipeline, LLC and Minnesota Limited, LLC and served natural gas utilities across the United States, focusing on recurring integrity, station and maintenance work and opportunities for large transmission pipeline construction projects. The transaction closed on April 9, 2020. See Note 3 for further information. Additionally, on February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell the Energy Services Disposal Group, which obtained and offered competitive variable and fixed-price physical natural gas supplies and services primarily to commercial and industrial customers and electric and natural gas utilities in over 30 states. The transaction closed on June 1, 2020. See Note 3 for further information. COVID-19 Impacts. On March 11, 2020, the World Health Organization declared the current COVID-19 outbreak to be a global pandemic, and on March 13, 2020, the United States declared a national emergency. In response to these declarations and the rapid spread of COVID-19, federal, state and local governments have imposed varying degrees of restrictions on business and social activities to contain COVID-19, including business shutdowns and closures, travel restrictions, quarantines, curfews, shelter in place and “stay-at-home” orders in the Registrants’ service territories. State and local authorities have also implemented multi-step policies with the goal of re-opening various sectors of the economy such as retail establishments, health and personal care businesses, and restaurants, among others. Governing authorities continue to reassess re-opening approaches and decisions for their respective jurisdictions given the number of COVID-19 cases and hospitalizations. The COVID-19 outbreak may significantly worsen in the United States during the upcoming winter months, which may cause federal, state and local governments to reconsider restrictions on business and social activities. In the event governments increase restrictions, the re-opening of the economy may be further curtailed. The Registrants have experienced some resulting disruptions to their business operations, as these restrictions significantly impacted, and may continue to impact, many sectors of the economy with various businesses curtailing or ceasing normal operations. The Registrants’ electric facilities and natural gas distribution systems, as applicable, have remained operational, and their respective customers have continued to receive service. While residential electric usage has increased as individuals continue to stay at home or work remotely, the Registrants have experienced reduced demand and usage among their respective electric and natural gas commercial and industrial customers, as well as a decrease in revenues related to disconnections and reconnections due to the varying disconnect moratoriums across their service territories during 2020 due to COVID-19. Houston Electric is following PUCT orders regarding disconnection practices related to those customers impacted by COVID-19. See Note 6 for further discussion. As a result of the disconnect moratoriums across CenterPoint Energy’s and CERC’s NGD service territories and other payment deferrals or arrangements, days outstanding on receivables and uncollectible accounts have increased, resulting in an increase to allowance for doubtful accounts, which may ultimately increase further. However, CenterPoint Energy’s NGD and CERC’s NGD service territories and Indiana Electric have either (1) received authority from their public utility commissions to defer bad debt expense associated with COVID-19 as a regulatory asset or (2) exercised existing authority to recover bad debt expense through a tracking mechanism. Some of the Registrants also received authority to recover other COVID-19 costs but must offset those costs with any cost reductions attributable to COVID-19. The ultimate impacts of the COVID-19 pandemic on the Registrants’ businesses will depend on future developments and evolving factors, including, among others, the ultimate spread, scope and duration of the pandemic, the consequences of governmental and other measures designed to prevent the spread of COVID-19, the development of effective treatments or vaccines, actions taken by governmental authorities, customers, suppliers and other third parties, workforce availability and the timing and extent to which normal economic and operating conditions resume. While the Registrants continue to assess the COVID-19 situation, they cannot estimate with any degree of certainty the full impact of the COVID-19 pandemic on their liquidity, financial condition and future results of operations at this time. However, |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements [Text Block] | New Accounting Pronouncements The following table provides an overview of certain recently adopted or issued accounting pronouncements applicable to all the Registrants, unless otherwise noted. Recently Adopted Accounting Standards ASU Number and Name Description Date of Adoption Financial Statement Impact ASU 2016-13- Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This standard, including standards amending this standard, requires a new model called CECL to estimate credit losses for (1) financial assets subject to credit losses and measured at amortized cost and (2) certain off-balance sheet credit exposures. Upon initial recognition of the exposure, the CECL model requires an entity to estimate the credit losses expected over the life of an exposure based on historical information, current information and reasonable and supportable forecasts, including estimates of prepayments. Transition method: modified retrospective January 1, 2020 The Registrants adopted the standard and recognized a cumulative-effect adjustment of the transition to opening retained earnings and allowance for doubtful accounts with no impact on results of operations and cash flows. See Note 4 for more information. ASU 2018-13- Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement This standard eliminates, modifies and adds certain disclosure requirements for fair value measurements. Transition method: prospective for additions and one modification and retrospective for all other amendments Adoption of eliminations and modifications as of September 30, 2018 and additions as of January 1, 2020 The adoption of this standard did not impact the Registrants’ financial position, results of operations or cash flows. The disclosures modified and added upon adoption are no longer included in Note 8 due to the sale of the Energy Services Disposal Group. ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This standard simplifies accounting for income taxes by eliminating certain exceptions to the guidance for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also simplifies aspects of the accounting for franchise taxes that are partially based on income and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Transition method: prospective for all amendments that apply to the Registrants January 1, 2020 Upon adoption, the Registrants are not required to apply the intraperiod tax allocation exception when there is a current-period loss from continuing operations. Accordingly, CenterPoint Energy determined the tax effect of income from continuing operations without considering the tax effects of items that are not included in continuing operations (i.e., discontinued operations). Additionally, CenterPoint Energy is no longer required to limit the year-to-date tax benefit recognized when the year-to-date benefit exceeds the anticipated full year benefit. Issued, Not Yet Effective Accounting Standards ASU Number and Name Description Effective Date Financial Statement Impact ASU 2020-06: Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity This standard eliminates the cash conversion and beneficial conversion feature models in ASC 470-20 that require separate accounting for embedded features as a component of equity. It simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification. The standard also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share (EPS) calculation and the average market price to calculate the diluted EPS denominator. Additional disclosures will also be required upon adoption. Transition method : modified retrospective January 1, 2022 CenterPoint Energy is currently assessing the impact that the adoption of this standard may have on its financial position, results of operations, cash flows and disclosures related to its Series B Preferred Stock and Series C Preferred Stock. Management believes that other recently adopted and recently issued accounting standards that are not yet effective will not have a material impact on the Registrants’ financial position, results of operations or cash flows upon adoption. |
Divestitures (CenterPoint Energ
Divestitures (CenterPoint Energy and CERC) | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures (CenterPoint Energy and CERC) [Text Block] | Divestitures (CenterPoint Energy and CERC) Divestiture of Infrastructure Services (CenterPoint Energy). On February 3, 2020, CenterPoint Energy, through its subsidiary VUSI, entered into the Securities Purchase Agreement to sell the Infrastructure Services Disposal Group to PowerTeam Services. Subject to the terms and conditions of the Securities Purchase Agreement, PowerTeam Services agreed to purchase all of the outstanding equity interests of VISCO for approximately $850 million, subject to customary adjustments set forth in the Securities Purchase Agreement, including adjustments based on VISCO’s net working capital at closing, indebtedness, cash and cash equivalents and transaction expenses. The transaction closed on April 9, 2020 for $850 million in cash. Additionally, as of September 30, 2020, CenterPoint Energy had a receivable from PowerTeam Services for working capital and other adjustments set forth in the Security Purchase Agreement. In February 2020, certain assets and liabilities representing the Infrastructure Services Disposal Group met the held for sale criteria and represented all of the businesses within the reporting unit. In accordance with the Securities Purchase Agreement, VISCO was converted from a wholly-owned corporation to a limited liability company that was disregarded for federal income tax purposes immediately prior to the closing of the transaction resulting in the sale of membership units. The sale was considered an asset sale for tax purposes, requiring net deferred tax liabilities of approximately $127 million as of April 9, 2020, the date the transaction closed, to be recognized as a deferred income tax benefit by CenterPoint Energy. Additionally, CenterPoint Energy recognized a current tax benefit of $2 million and a current tax expense of $157 million in the three and nine months ended September 30, 2020, respectively, as a result of the cash taxes payable upon sale. Upon classifying the Infrastructure Services Disposal Group as held for sale and in connection with the preparation of CenterPoint Energy’s financial statements as of the three months ended March 31, 2020, CenterPoint Energy recorded a goodwill impairment of approximately $82 million, plus an additional loss of $14 million for cost to sell, in the nine months ended September 30, 2020. Additionally, CenterPoint Energy recognized a net pre-tax loss of $9 million and $6 million in connection with the closing of the disposition of the Infrastructure Services Disposal Group during the three and nine months ended September 30, 2020, respectively. In the Securities Purchase Agreement, CenterPoint Energy agreed to a mechanism to reimburse PowerTeam Services subsequent to closing of the sale for certain amounts of specifically identified change orders that may be ultimately rejected by one of VISCO’s customers as part of on-going audits. CenterPoint Energy’s maximum contractual exposure under the Securities Purchase Agreement, in addition to the amount reflected in the working capital adjustment, for these change orders is $21 million. CenterPoint Energy does not expect the ultimate outcome of this matter to have a material adverse effect on its financial condition, results of operations or cash flows. Divestiture of Energy Services (CenterPoint Energy and CERC). On February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell the Energy Services Disposal Group to Symmetry Energy Solutions Acquisition. This transaction did not include CEIP and its assets or MES. Symmetry Energy Solutions Acquisition agreed to purchase all of the outstanding equity interests of the Energy Services Disposal Group for approximately $400 million, subject to customary adjustments set forth in the Equity Purchase Agreement, and inclusive of an estimate of the cash adjustment for the Energy Services Disposal Group’s net working capital at closing, indebtedness and transaction expenses. The transaction closed on June 1, 2020 for approximately $286 million in cash. Additionally, as of September 30, 2020, CenterPoint Energy had a receivable of $79 million from Symmetry Energy Solutions Acquisition for working capital and other adjustments set forth in the Equity Purchase Agreement. CenterPoint Energy collected such receivable in October 2020 for full and final settlement of the working capital adjustment under the Equity Purchase Agreement. In February 2020, certain assets and liabilities representing the Energy Services Disposal Group met the criteria to be classified as held for sale and represented substantially all of the businesses within the reporting unit. In accordance with the Equity Purchase Agreement, CES was converted from a wholly-owned corporation to a limited liability company that is disregarded for federal income tax purposes immediately prior to the closing of the transaction resulting in the sale of membership units. The sale was considered an asset sale for tax purposes, requiring the net deferred tax liability of approximately $3 million as of June 1, 2020, the date the transaction closed, to be recognized as a deferred tax benefit by CenterPoint Energy and CERC upon closing. Additionally, CenterPoint Energy and CERC recognized current tax expense of $1 million and $4 million in the three and nine months ended September 30, 2020, respectively, as a result of the cash taxes payable upon sale. Upon classifying the Energy Services Disposal Group as held for sale and in connection with the preparation of CenterPoint Energy’s and CERC’s respective financial statements as of the three months ended March 31, 2020, CenterPoint Energy and CERC recorded a goodwill impairment of approximately $62 million in the nine months ended September 30, 2020. Additionally, CenterPoint Energy recognized a loss on assets held for sale of approximately $-0- and $31 million, plus an additional loss of $-0- and $6 million for cost to sell, recorded only at CenterPoint Energy during the three and nine months ended September 30, 2020, respectively. CenterPoint Energy and CERC recognized a gain on sale of $3 million in the three and nine months ended September 30, 2020. As a result of the sale of the Energy Services and Infrastructure Services Disposal Groups, there were no assets or liabilities classified as held for sale as of September 30, 2020. The assets and liabilities of the Infrastructure Services and Energy Services Disposal Groups as of December 31, 2019 have been recast as assets and liabilities held for sale and retained their current or long-term classification applicable as of December 31, 2019. L ong-lived assets are not depreciated or amortized once they are classified as held for sale. The assets and liabilities of the Infrastructure Services and Energy Services Disposal Groups classified as held for sale in CenterPoint Energy’s and CERC’s Condensed Consolidated Balance Sheets, as applicable, as of December 31, 2019 included the following: December 31, 2019 CenterPoint Energy CERC Infrastructure Services Disposal Group Energy Services Disposal Group Total Energy Services Disposal Group (in millions) Receivables, net $ 192 $ 445 $ 637 $ 445 Accrued unbilled revenues 109 8 117 8 Natural gas inventory — 67 67 67 Materials and supplies 6 — 6 — Non-trading derivative assets — 136 136 136 Other 4 35 39 35 Total current assets held for sale 311 691 1,002 691 Property, plant and equipment, net 295 26 321 26 Goodwill 220 62 282 62 Non-trading derivative assets — 58 58 58 Other 234 67 301 67 Total non-current assets held for sale 749 213 962 213 Total assets held for sale $ 1,060 $ 904 $ 1,964 $ 904 Accounts payable $ 45 $ 299 $ 344 $ 299 Taxes accrued 2 — 2 — Non-trading derivative liabilities — 44 44 44 Other 40 25 65 25 Total current liabilities held for sale 87 368 455 368 Non-trading derivative liabilities — 14 14 14 Benefit obligations — 4 4 4 Other 16 9 25 9 Total non-current liabilities held for sale 16 27 43 27 Total liabilities held for sale $ 103 $ 395 $ 498 $ 395 Because the Infrastructure Services and Energy Services Disposal Groups met the held for sale criteria and their disposals also represent a strategic shift to CenterPoint Energy and CERC, as applicable, the earnings and expenses directly associated with these dispositions, including operating results of the businesses through the date of sale, are reflected as discontinued operations on CenterPoint Energy’s and CERC’s Statements of Consolidated Income, as applicable. As a result, prior periods have also been recast to reflect the earnings or losses from such businesses as income from discontinued operations, net of tax. A summary of the Infrastructure Services and Energy Services Disposal Groups presented in CenterPoint Energy’s and CERC’s Condensed Statements of Consolidated Income, as applicable, is as follows: Three Months Ended September 30, 2020 2019 2020 2019 2020 2019 2020 2019 CenterPoint Energy CERC Infrastructure Services Disposal Group Energy Services Disposal Group Total Energy Services Disposal Group (in millions) Revenues $ — $ 377 $ — $ 740 $ — $ 1,117 $ — $ 740 Expenses: Non-utility cost of revenues — 96 — 715 — 811 — 715 Operation and maintenance — 235 — 17 — 252 — 17 Depreciation and amortization — 15 — 3 — 18 — 3 Taxes other than income taxes — 1 — — — 1 — — Total — 347 — 735 — 1,082 — 735 Income (loss) from Discontinued Operations before income taxes — 30 — 5 — 35 — 5 Gain (loss) on classification to held for sale, net (2) (9) — 3 — (6) — 3 — Income tax expense (benefit) (1) 15 1 1 — 16 1 2 Net income (loss) from Discontinued Operations $ (8) $ 15 $ 2 $ 4 $ (6) $ 19 $ 2 $ 3 Nine Months Ended September 30, 2020 2019 (1) 2020 2019 2020 2019 2020 2019 CenterPoint Energy CERC Infrastructure Services Disposal Group Energy Services Disposal Group Total Energy Services Disposal Group (in millions) Revenues $ 250 $ 849 $ 1,167 $ 2,834 $ 1,417 $ 3,683 $ 1,167 $ 2,834 Expenses: Non-utility cost of revenues 50 228 1,108 2,701 1,158 2,929 1,108 2,701 Operation and maintenance 184 526 34 51 218 577 34 51 Depreciation and amortization — 39 — 10 — 49 — 10 Taxes other than income taxes 1 1 3 — 4 1 3 — Total 235 794 1,145 2,762 1,380 3,556 1,145 2,762 Income (loss) from Discontinued Operations before income taxes 15 55 22 72 37 127 22 72 Gain (loss) on classification to held for sale, net (2) (102) — (96) — (198) — (90) — Income tax expense (benefit) 24 21 (3) 17 21 38 (2) 15 Net income (loss) from Discontinued Operations $ (111) $ 34 $ (71) $ 55 $ (182) $ 89 $ (66) $ 57 (1) Reflects February 1, 2019 to September 30, 2019 results only due to the Merger. (2) Loss from classification to held for sale is inclusive of goodwill impairment, gains and losses recognized upon sale, and for CenterPoint Energy, its costs to sell. CenterPoint Energy and CERC have elected not to separately disclose discontinued operations on their respective Condensed Statements of Consolidated Cash Flows. L ong-lived assets are not depreciated or amortized once they are classified as held for sale. The following table summarizes CenterPoint Energy’s and CERC’s cash flows from discontinued operations and certain supplemental cash flow disclosures related to the Infrastructure Services and Energy Services Disposal Groups, as applicable: Nine Months Ended September 30, 2020 2019 (1) 2020 2019 2020 2019 CenterPoint Energy CERC Infrastructure Services Disposal Group Energy Services Disposal Group Energy Services Disposal Group (in millions) Depreciation and amortization $ — $ 39 $ — $ 10 $ — $ 10 Amortization of intangible assets in Non-utility cost of revenues — 15 — — — — Write-down of natural gas inventory — — 3 5 3 5 Capital expenditures 16 53 1 12 1 12 Non-cash transactions: Accounts payable related to capital expenditures 2 1 4 1 4 1 (1) Reflects February 1, 2019 to September 30, 2019 results only due to the Merger. Other Sale Related Matters (CenterPoint Energy and CERC). CES provided natural gas supply to CenterPoint Energy’s and CERC’s NGD under contracts executed in a competitive bidding process, with the duration of some contracts extending into 2021. In addition, CERC is the natural gas transportation provider for a portion of CES’s customer base and will continue to be the transportation provider for these customers as long as these customers retain a relationship with the divested CES business. Revenues and expenses incurred by CenterPoint Energy and CERC for natural gas transportation and supply until the closing of the sale of the Energy Services Disposal Group were as follows: Three Months Ended September 30, 2020 2019 2020 2019 CenterPoint Energy CERC (in millions) Transportation revenue $ — $ 33 $ — $ 33 Natural gas expense — 10 — 10 Nine Months Ended September 30, 2020 (1) 2019 2020 (1) 2019 CenterPoint Energy CERC (in millions) Transportation revenue $ 34 $ 81 $ 34 $ 81 Natural gas expense 48 90 47 89 (1) Represents charges for the period January 1, 2020 until the closing of the sale of the Energy Services Disposal Group. NGD has AMAs associated with its utility distribution service in Arkansas, Louisiana, Mississippi, Oklahoma and Texas. The AMAs are with the Energy Services Disposal Group and will expire in 2021. Pursuant to the provisions of the agreements, NGD sells natural gas and agrees to repurchase an equivalent amount of natural gas during the winter heating seasons at the same cost. These transactions are accounted for as inventory financing. CenterPoint Energy and CERC had outstanding obligations related to the AMAs of $31 million and $-0- as of September 30, 2020 and December 31, 2019, respectively. The Infrastructure Services Disposal Group provides pipeline construction and repair services to CenterPoint Energy’s and CERC’s NGD. In accordance with consolidation guidance in ASC 980—Regulated Operations, costs incurred by NGD utilities for these pipeline construction and repair services are not eliminated in consolidation when capitalized and included in rate base by the NGD utility. Amounts charged for these services that are not capitalized are included primarily in Operation and maintenance expenses. Fees incurred by CenterPoint Energy’s and CERC’s NGD for pipeline construction and repair services are as follows: Three Months Ended September 30, 2020 2019 2020 2019 CenterPoint Energy CERC (in millions) Pipeline construction and repair services capitalized $ — $ 45 $ — $ 3 Pipeline construction and repair service charges in operations and maintenance expense — 1 — 1 Nine Months Ended September 30, 2020 (1) 2019 (2) 2020 2019 CenterPoint Energy CERC (in millions) Pipeline construction and repair services capitalized $ 34 $ 112 $ — $ 12 Pipeline construction and repair service charges in operations and maintenance expense 1 5 1 2 (1) Represents charges for the period January 1, 2020 until the closing of the sale of the Infrastructure Services Disposal Group. (2) Represents charges for the period beginning February 1, 2019 due to the Merger. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition [Text Block] | Revenue Recognition and Provision for Doubtful Accounts Revenues from Contracts with Customers In accordance with ASC 606, Revenue from Contracts with Customers, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Registrants expect to be entitled to receive in exchange for these goods or services. The revenues and related balances in the following tables exclude operating revenues and balances from the Energy Services Disposal Group and Infrastructure Services Disposal Group, which are reflected as discontinued operations and assets held for sale prior to the date of closing of each transaction. See Note 3 for further information. The following tables disaggregate revenues by reportable segment and major source: CenterPoint Energy Three Months Ended September 30, 2020 Houston Electric Indiana Natural Gas Distribution Corporate Total (in millions) Revenue from contracts $ 828 $ 157 $ 550 $ 75 $ 1,610 Other (1) — — 10 2 12 Total revenues $ 828 $ 157 $ 560 $ 77 $ 1,622 Nine Months Ended September 30, 2020 Houston Electric Indiana Natural Gas Distribution Corporate Total (in millions) Revenue from contracts $ 2,188 $ 414 $ 2,475 $ 240 $ 5,317 Other (1) (2) — 44 5 47 Total revenues $ 2,186 $ 414 $ 2,519 $ 245 $ 5,364 Three Months Ended September 30, 2019 Houston Electric Indiana Natural Gas Distribution Corporate Total (in millions) Revenue from contracts $ 861 $ 165 $ 527 $ 91 $ 1,644 Other (1) (2) — 14 2 14 Total revenues $ 859 $ 165 $ 541 $ 93 $ 1,658 Nine Months Ended September 30, 2019 Houston Electric Indiana Natural Gas Distribution (2) Corporate Total (in millions) Revenue from contracts $ 2,319 $ 388 $ 2,603 $ 210 $ 5,520 Other (1) (6) — 26 5 25 Total revenues $ 2,313 $ 388 $ 2,629 $ 215 $ 5,545 (1) Primarily consists of income from ARPs, weather hedge gains (losses) and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Total lease income was $2 million and $4 million for the three months ended September 30, 2020 and 2019, respectively, and $4 million and $5 million for the nine months ended September 30, 2020 and 2019, respectively. (2) Reflects revenues from Vectren subsidiaries for the period from February 1, 2019 to September 30, 2019. Houston Electric Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Revenue from contracts $ 828 $ 861 $ 2,188 $ 2,319 Other (1) — (2) (6) (9) Total revenues $ 828 $ 859 $ 2,182 $ 2,310 (1) Primarily consists of income from ARPs, weather hedge gains (losses) and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Lease income was not significant for the three and nine months ended September 30, 2020 and 2019. CERC Three Months Ended September 30, 2020 2019 Natural Gas Distribution Corporate Total Natural Gas Distribution Corporate Total (in millions) Revenue from contracts $ 414 $ 3 $ 417 $ 403 $ 5 $ 408 Other (1) 8 1 9 12 — 12 Total revenues $ 422 $ 4 $ 426 $ 415 $ 5 $ 420 Nine Months Ended September 30, 2020 2019 Natural Gas Distribution Corporate Total Natural Gas Distribution Corporate Total (in millions) Revenue from contracts $ 1,865 $ 8 $ 1,873 $ 2,123 $ 6 $ 2,129 Other (1) 45 2 47 29 — 29 Total revenues $ 1,910 $ 10 $ 1,920 $ 2,152 $ 6 $ 2,158 (1) Primarily consists of income from ARPs, weather hedge gains (losses) and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Lease income was not significant for the three and nine months ended September 30, 2020 and 2019. Houston Electric T&D (CenterPoint Energy and Houston Electric). Houston Electric distributes electricity to customers over time and customers consume the electricity when delivered. Revenue, consisting of both volumetric and fixed tariff rates set by the PUCT, is recognized as electricity is delivered and represents amounts both billed and unbilled. Discretionary services requested by customers are provided at a point in time with control transferring upon the completion of the service. Revenue for discretionary services is recognized upon completion of service based on the tariff rates set by the PUCT. Payments for electricity distribution and discretionary services are aggregated and received on a monthly basis. Houston Electric performs transmission services over time as a stand-ready obligation to provide a reliable network of transmission systems. Revenue is recognized upon time elapsed, and the monthly tariff rate set by the PUCT. Payments are received on a monthly basis. Indiana Electric Integrated (CenterPoint Energy). Indiana Electric generates, distributes and transmits electricity to customers over time, and customers consume the electricity when delivered. Revenue, consisting of both volumetric and fixed tariff rates set by state regulators, is recognized as electricity is delivered and represents amounts both billed and unbilled. Customers are billed monthly and payment terms, set by the regulator, require payment within a month of billing. Natural Gas Distribution (CenterPoint Energy and CERC). CenterPoint Energy and CERC distribute and transport natural gas to customers over time, and customers consume the natural gas when delivered. Revenue, consisting of both volumetric and fixed tariff rates set by the state governing agency for that service area, is recognized as natural gas is delivered and represents amounts both billed and unbilled. Discretionary services requested by the customer are satisfied at a point in time and revenue is recognized upon completion of service and the tariff rates set by the applicable state regulator. Payments of natural gas distribution, transportation and discretionary services are aggregated and received on a monthly basis. Contract Balances. When the timing of delivery of service is different from the timing of the payments made by customers and when the right to consideration is conditioned on something other than the passage of time, the Registrants recognize either a contract asset (performance precedes billing) or a contract liability (customer payment precedes performance). Those customers that prepay are represented by contract liabilities until the performance obligations are satisfied. The Registrants’ contract assets are included in Accrued unbilled revenues in their Condensed Consolidated Balance Sheets. As of September 30, 2020, CenterPoint Energy’s contract assets primarily relate to ESG contracts where revenue is recognized using the input method. The Registrants’ contract liabilities are included in Accounts payable and Other current liabilities in their Condensed Consolidated Balance Sheets. As of September 30, 2020, CenterPoint Energy’s contract liabilities primarily relate to ESG contracts where revenue is recognized using the input method. The opening and closing balances of accounts receivable, other accrued unbilled revenue, contract assets and contract liabilities from contracts with customers from continuing operations as of December 31, 2019 and September 30, 2020, respectively, are as follows: CenterPoint Energy Accounts Receivable Other Accrued Unbilled Revenues Contract Contract Liabilities (in millions) Opening balance as of December 31, 2019 $ 566 $ 469 $ 6 $ 30 Closing balance as of September 30, 2020 568 285 22 20 Increase (decrease) $ 2 $ (184) $ 16 $ (10) The amount of revenue recognized in the nine-month period ended September 30, 2020 that was included in the opening contract liability was $29 million. The difference between the opening and closing balances of the contract liabilities primarily results from the timing difference between CenterPoint Energy’s performance and the customer’s payment. Houston Electric Accounts Receivable Other Accrued Unbilled Revenues Contract Liabilities (in millions) Opening balance as of December 31, 2019 $ 210 $ 117 $ 3 Closing balance as of September 30, 2020 321 124 4 Increase $ 111 $ 7 $ 1 The amount of revenue recognized in the nine-month period ended September 30, 2020 that was included in the opening contract liability was $3 million. The difference between the opening and closing balances of the contract liabilities primarily results from the timing difference between Houston Electric’s performance and the customer’s payment. CERC Accounts Receivable Other Accrued Unbilled Revenues (in millions) Opening balance as of December 31, 2019 $ 222 $ 249 Closing balance as of September 30, 2020 123 91 Decrease $ (99) $ (158) CERC does not have any opening or closing contract asset or contract liability balances. Remaining Performance Obligations (CenterPoint Energy). The table below discloses (1) the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period for contracts and (2) when CenterPoint Energy expects to recognize this revenue. Such contracts include energy performance and sustainable infrastructure services contracts of ESG, which are included in Corporate and Other. Rolling 12 Months Thereafter Total (in millions) Revenue expected to be recognized on contracts in place as of September 30, 2020: Corporate and Other $ 209 $ 590 $ 799 $ 209 $ 590 $ 799 Practical Expedients and Exemption. Sales taxes and other similar taxes collected from customers are excluded from the transaction price. For contracts for which revenue from the satisfaction of the performance obligations is recognized in the amount invoiced, the practical expedient was elected and revenue expected to be recognized on these contracts has not been disclosed. Provision of Doubtful Accounts The Registrants adopted ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and all related amendments on January 1, 2020 using a modified retrospective method. ASU 2016-13 replaces the “incurred loss” model with a CECL model for financial assets measured at amortized cost and for certain off-balance sheet credit exposures. Adoption of this standard did not have a material impact on the Registrants’ respective consolidated financial statements. CenterPoint Energy and CERC applied the $5 million cumulative-effect adjustment of the transition to opening retained earnings as of the effective date, which included $2 million related to the Energy Services Disposal Group. There was no material cumulative-effect adjustment for Houston Electric. The disclosures for periods prior to adoption will be presented in accordance with accounting standards in effect for those periods. CenterPoint Energy and CERC segregate financial assets that fall under the scope of Topic 326, primarily trade receivables due in one year or less, into portfolio segments based on shared risk characteristics, such as geographical location and regulatory environment, for evaluation of expected credit losses. Historical and current information, such as average write-offs, are applied to each portfolio segment to estimate the allowance for losses on uncollectible receivables. Additionally, the allowance for losses on uncollectible receivables is adjusted for reasonable and supportable forecasts of future economic conditions, which can include changing weather, commodity prices, regulations, and macroeconomic factors, among others. Houston Electric had no material changes in its methodology to recognize losses on financial assets that fall under the scope of Topic 326, primarily due to the nature of its customers and regulatory environment. For a discussion of regulatory deferrals related to COVID-19, see Note 6. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans [Text Block] | Employee Benefit Plans The Registrants’ net periodic cost, before considering amounts subject to overhead allocations for capital expenditure projects or for amounts subject to deferral for regulatory purposes, includes the following components relating to pension and postretirement benefits: Pension Benefits (CenterPoint Energy) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Service cost (1) $ 10 $ 10 $ 32 $ 30 Interest cost (2) 18 25 56 73 Expected return on plan assets (2) (28) (27) (85) (79) Amortization of prior service cost (2) — 2 — 6 Amortization of net loss (2) 10 13 31 39 Settlement cost (2) (3) 1 1 2 2 Curtailment gain (2) (4) — — — (1) Net periodic cost $ 11 $ 24 $ 36 $ 70 (1) Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Condensed Statements of Consolidated Income, net of amounts capitalized and regulatory deferrals. (2) Amounts presented in the table above are included in Other income (expense), net in CenterPoint Energy’s Condensed Statements of Consolidated Income, net of regulatory deferrals. (3) A one-time, non-cash settlement cost is required when the total lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of the net periodic cost for that year. In each of the three and nine months ended September 30, 2020 and 2019, CenterPoint Energy recognized non-cash settlement costs due to lump sum settlement payments from Vectren pension plans. (4) A curtailment gain or loss is required when the expected future services of a significant number of employees are reduced or eliminated for the accrual of benefits. In the nine months ended September 30, 2019, CenterPoint Energy recognized a pension curtailment gain related to Vectren employees whose employment was terminated after the Merger closed. Postretirement Benefits Three Months Ended September 30, 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Service cost (1) $ 1 $ — $ 1 $ 2 $ — $ — Interest cost (2) 2 1 — 4 1 2 Expected return on plan assets (2) (1) (1) (1) (3) (1) — Amortization of prior service cost (credit) (2) (1) (1) 1 (1) (1) — Net periodic cost (income) $ 1 $ (1) $ 1 $ 2 $ (1) $ 2 Nine Months Ended September 30, 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Service cost (1) $ 2 $ — $ 1 $ 3 $ — $ 1 Interest cost (2) 8 4 2 12 5 4 Expected return on plan assets (2) (4) (3) (1) (6) (3) (1) Amortization of prior service cost (credit) (2) (3) (4) 1 (3) (4) — Net periodic cost (income) $ 3 $ (3) $ 3 $ 6 $ (2) $ 4 (1) Amounts presented in the tables above are included in Operation and maintenance expense in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of amounts capitalized and regulatory deferrals. (2) Amounts presented in the tables above are included in Other income (expense), net in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of regulatory deferrals. The table below reflects the expected contributions to be made to the pension and postretirement benefit plans during 2020: CenterPoint Energy Houston Electric CERC (in millions) Expected minimum contribution to pension plans during 2020 $ 84 $ — $ — Expected contribution to postretirement benefit plans in 2020 11 3 3 The table below reflects the contributions made to the pension and postretirement benefit plans during 2020: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Pension plans $ 79 $ — $ — $ 84 $ — $ — Postretirement benefit plans 2 1 1 8 3 2 COVID-19 Impacts . The uncertainties related to the COVID-19 pandemic have had a negative impact on financial markets, which has resulted in volatility of the fair value of plan assets during the nine months ended September 30, 2020. The Registrants remeasure the funded status of each plan as of December 31 each year, and at an interim period when a curtailment, settlement, or material plan amendment occurs. On the measurement date, actuarial gains or losses are recognized in accumulated other comprehensive income, or when cost is recovered through regulated rates, as a regulatory asset or liability. During the nine months ended September 30, 2020, the fair value of pension plan assets increased by approximately $115 million or 5.7% from December 31, 2019, excluding CenterPoint Energy’s contributions to, and benefit distributions |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2020 | |
Regulatory Assets and Liabilities, Other Disclosures [Abstract] | |
Regulatory Matters [Text Block] | Regulatory Matters Equity Return (CenterPoint Energy and Houston Electric) As of September 30, 2020, CenterPoint Energy and Houston Electric have not recognized an allowed equity return of $144 million on Houston Electric’s true-up balance and certain storm restoration balances because such return will be recognized as it is recovered in future rates. The timing of CenterPoint Energy’s and Houston Electric’s recognition of the equity return will vary each period based on amounts actually collected during that period. The unrecognized equity return will be recognized as it is recovered in rates through 2024. The actual amounts recognized are adjusted at least annually to correct any over-collections or under-collections during the preceding 12 months. CenterPoint Energy and Houston Electric Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Allowed equity return recognized $ 10 $ 14 $ 24 $ 38 Houston Electric Base Rate Case (CenterPoint Energy and Houston Electric) On April 5, 2019, and subsequently adjusted in errata filings in May and June 2019, Houston Electric filed its base rate application with the PUCT and the cities in its service area to change its rates, seeking approval for revenue increases of approximately $194 million, among other requests. On January 23, 2020, Houston Electric filed a Stipulation and Settlement Agreement with the PUCT that provided for the following, among other things: • an overall revenue requirement increase of approximately $13 million; • an ROE of 9.4%; • a capital structure of 57.5% debt/42.5% equity; • a refund of unprotected EDIT of $105 million plus carrying costs over approximately 30-36 months; and • recovery of all retail transmission related costs through the TCRF. Also, Houston Electric is not required to make a one-time refund of capital recovery from its TCOS and DCRF mechanisms. Future TCOS filings will take into account both ADFIT and EDIT until the final order from Houston Electric’s next base rate proceeding. No rate base items are required to be written off; however, approximately $12 million in rate case expenses were written off in 2019. A base rate application must be filed for Houston Electric no later than four years from the date of the PUCT’s final order in the proceeding. Additionally, Houston Electric will not file a DCRF in 2020, nor will a subsequent separate proceeding with the PUCT be instituted regarding EDIT on Houston Electric’s securitized assets. Furthermore, under the terms of the Stipulation and Settlement Agreement, Houston Electric agreed to adopt certain ring-fencing measures to increase its financial separateness from CenterPoint Energy. The PUCT approved the Stipulation and Settlement Agreement at its February 14, 2020 open meeting and issued a final order on March 9, 2020. The PUCT declined to impose a dividend restriction in the final order. The rates were implemented on April 23, 2020. CenterPoint Energy and Houston Electric record pre-tax expense for (i) probable disallowances of capital investments and (ii) customer refund obligations and costs deferred in regulatory assets when recovery of such amounts is no longer considered probable. COVID-19 Regulatory Matters Governors, public utility commissions and other authorities in the states in which the Registrants operate have issued a number of different orders related to the COVID-19 pandemic, including orders addressing customer non-payment and disconnection. Although the disconnect moratoriums have either expired or will expire during the fourth quarter of 2020 in certain of the Registrants’ service territories, CenterPoint Energy continues to support those customers who may need payment assistance, arrangements or extensions. On March 26, 2020, the PUCT issued two orders related to COVID-19 issues that affect Houston Electric. First, the PUCT issued an order related to accrual of regulatory assets granting authority for utilities to record as a regulatory asset expenses resulting from the effects of COVID-19. In the order, the PUCT noted that it will consider whether a utility’s request for recovery of the regulatory asset is reasonable and necessary in a future proceeding. Second, the PUCT issued an order related to the COVID-19 ERP, as modified, which, in light of the disaster declarations issued by the governor of Texas, authorized a customer assistance program for certain residential customers of electric service in areas of Texas open to customer choice, which includes Houston Electric’s service territory. The PUCT issued an order on August 27, 2020 to conclude the COVID-19 ERP. The PUCT determined that enrollment in the COVID-19 ERP would end on August 31, 2020 and benefits under the program ended on September 30, 2020. Final claims for reimbursement must be submitted to the transmission and distribution utilities by November 30, 2020. The transmission and distribution utilities must file a tariff rider cancellation seven days before the date on which it is estimated that revenues from the COVID-19 ERP are approximately equal to its program expenses. Final program reports must be submitted to the PUCT by January 15, 2021. The COVID-19 ERP allows for any over/under collection of program expenses to be recorded as a regulatory asset or liability. Houston Electric may seek recovery of such regulatory asset or liability in its next DCRF, TCRF or base rate case proceeding. CenterPoint Energy’s and Houston Electric’s COVID-19 ERP regulatory assets were $10 million as of September 30, 2020. Commissions in all of Indiana Electric’s and CenterPoint Energy’s and CERC’s NGD service territories have either (1) issued orders to record a regulatory asset for incremental bad debt expenses related to COVID-19, including costs associated with the suspension of disconnections and payment plans or (2) provided authority to recover bad debt expense through an existing tracking mechanism. CenterPoint Energy and CERC have recorded estimated incremental uncollectible receivables to the associated regulatory asset of $16 million and $14 million, respectively, as of September 30, 2020. In some of the states in which the Registrants operate, public utility commissions have authorized utilities to employ deferred accounting authority for certain COVID-19 related costs which ensure the safety and health of customers, employees, and contractors, that would not have been incurred in the normal course of business. CERC’s NGD service territories in Minnesota and Arkansas will include any offsetting savings in the deferral. Other jurisdictions where the Registrants operate may require them to offset the deferral with savings as well. ERCOT Loan Agreement (CenterPoint Energy and Houston Electric) On April 13, 2020, in connection with the PUCT’s COVID-19 ERP, Houston Electric entered into a no-interest loan agreement with ERCOT pursuant to which ERCOT loaned Houston Electric approximately $5 million to provide for an initial fund balance for reimbursement. As of September 30, 2020, $5 million of the loan was still outstanding. The ERCOT loan repayment date is on or before December 15, 2020. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments [Text Block] | Derivative Instruments The Registrants are exposed to various market risks. These risks arise from transactions entered into in the normal course of business. The Registrants utilize derivative instruments such as swaps and options to mitigate the impact of changes in commodity prices, weather and interest rates on operating results and cash flows. On February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell the Energy Services Disposal Group. The transaction closed on June 1, 2020. As a result, the following disclosures do not include the Energy Services Disposal Group. See Note 3 for further information. (a) Non-Trading Activities Commodity Derivative Instruments (CenterPoint Energy). CenterPoint Energy, through its Indiana Utilities, enters into certain derivative instruments to mitigate the effects of commodity price movements. Outstanding derivative instruments designated as economic hedges at the Indiana Utilities hedge long-term variable rate natural gas purchases. The Indiana Utilities have authority to refund and recover mark-to-market gains and losses associated with hedging natural gas purchases, and thus the gains and losses on derivatives are deferred in a regulatory liability or asset. Interest Rate Risk Derivative Instruments. From time to time, the Registrants may enter into interest rate derivatives that are designated as cash flow hedges or accounted for as economic hedges. The objective of these hedges is to offset risk associated with interest rates borne by the Registrants in connection with an anticipated future fixed rate debt offering or other exposure to variable rate debt. The Indiana Utilities have authority to refund and recover mark-to-market gains and losses associated with hedging financing activity, and thus the gains and losses on derivatives are deferred in a regulatory liability or asset. The table below summarizes the Registrants’ outstanding interest rate hedging activity: September 30, 2020 December 31, 2019 Hedging Classification Notional Principal (in millions) Economic hedge (1) $ 84 $ 84 (1) Relates to interest rate derivative instruments at SIGECO. Weather Hedges (CenterPoint Energy and CERC). CenterPoint Energy and CERC have weather normalization or other rate mechanisms that largely mitigate the impact of weather on NGD in Arkansas, Indiana, Louisiana, Mississippi, Minnesota, Ohio and Oklahoma, as applicable. CenterPoint Energy’s and CERC’s NGD in Texas and CenterPoint Energy’s electric operations in Texas and Indiana do not have such mechanisms, although fixed customer charges are historically higher in Texas for NGD compared to its other jurisdictions. As a result, fluctuations from normal weather may have a positive or negative effect on CenterPoint Energy’s and CERC’s NGD’s results in Texas and on CenterPoint Energy’s electric operations’ results in its Texas and Indiana service territories. CenterPoint Energy and CERC, as applicable, enter into winter season weather hedges from time to time for certain NGD jurisdictions and electric operations’ service territory to mitigate the effect of fluctuations from normal weather on results of operations and cash flows. These weather hedges are based on heating degree days at 10-year normal weather. Houston Electric and Indiana Electric do not enter into weather hedges. (b) Derivative Fair Values and Income Statement Impacts The following tables present information about derivative instruments and hedging activities. The first table provides a balance sheet overview of Derivative Assets and Liabilities, while the last table provides a breakdown of the related income statement impacts. Fair Value of Derivative Instruments and Hedged Items (CenterPoint Energy) September 30, 2020 December 31, 2019 Balance Sheet Location Derivative Derivative Derivative Derivative (in millions) Derivatives not designated as hedging instruments: Natural gas derivatives (1) Current Liabilities: Non-trading derivative liabilities $ — $ 1 $ — $ 7 Natural gas derivatives (1) Other Liabilities: Non-trading derivative liabilities — 6 — 15 Interest rate derivatives Other Liabilities — 24 — 10 Indexed debt securities derivative (2) Current Liabilities — 918 — 893 Total $ — $ 949 $ — $ 925 (1) Natural gas contracts are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due. However, the mark-to-market fair value of each natural gas contract is in a liability position with no offsetting amounts. (2) Derivative component of the ZENS obligation that represents the ZENS holder’s option to receive the appreciated value of the reference shares at maturity. See Note 11 for further information. Income Statement Impact of Hedge Accounting Activity (CenterPoint Energy) Three Months Ended September 30, Nine Months Ended September 30, Income Statement Location 2020 2019 2020 2019 (in millions) Effects of derivatives not designated as hedging instruments on the income statement: Indexed debt securities derivative Gain (loss) on indexed debt securities $ (84) $ (62) $ (25) $ (216) Total $ (84) $ (62) $ (25) $ (216) The indexed debt securities derivative is recorded at fair value and changes in the fair value are recorded in CenterPoint Energy’s Statements of Consolidated Income. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements [Text Block] | Fair Value Measurements Assets and liabilities that are recorded at fair value in the Registrants’ Condensed Consolidated Balance Sheets are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined below and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows: Level 1: Inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets carried at Level 1 fair value generally are exchange-traded derivatives and equity securities. Level 2: Inputs, other than quoted prices included in Level 1, are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Fair value assets and liabilities that are generally included in this category are derivatives with fair values based on inputs from actively quoted markets. A market approach is utilized to value the Registrants’ Level 2 natural gas derivative assets or liabilities. CenterPoint Energy’s Level 2 indexed debt securities derivative is valued using an option model and a discounted cash flow model, which uses projected dividends on the ZENS-Related Securities and a discount rate as observable inputs. Level 3: Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. Unobservable inputs reflect the Registrants’ judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. The Registrants develop these inputs based on the best information available, including the Registrants’ own data. The Registrants determine the appropriate level for each financial asset and liability on a quarterly basis. On February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell the Energy Services Disposal Group. The transaction closed on June 1, 2020. As a result, the following disclosures do not include the Energy Services Disposal Group. The following tables present information about the Registrants’ assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 and indicate the fair value hierarchy of the valuation techniques utilized by the Registrants to determine such fair value. CenterPoint Energy September 30, 2020 December 31, 2019 Level 2 Level 3 Total Level 2 Level 3 Total Assets (in millions) Corporate equities $ 838 $ — $ — $ 838 $ 825 $ — $ — $ 825 Investments, including money market funds (1) 44 — — 44 49 — — 49 Total assets $ 882 $ — $ — $ 882 $ 874 $ — $ — $ 874 Liabilities Indexed debt securities derivative $ — $ 918 $ — $ 918 $ — $ 893 $ — $ 893 Interest rate derivatives — 24 — 24 — 10 — 10 Natural gas derivatives — 7 — 7 — 22 — 22 Total liabilities $ — $ 949 $ — $ 949 $ — $ 925 $ — $ 925 Houston Electric September 30, 2020 December 31, 2019 Level 2 Level 3 Total Level 2 Level 3 Total Assets (in millions) Investments, including money market funds (1) $ 27 $ — $ — $ 27 $ 32 $ — $ — $ 32 Total assets $ 27 $ — $ — $ 27 $ 32 $ — $ — $ 32 CERC September 30, 2020 December 31, 2019 Level 2 Level 3 Total Level 2 Level 3 Total Assets (in millions) Corporate equities $ 2 $ — $ — $ 2 $ 2 $ — $ — $ 2 Investments, including money market funds (1) 11 — — 11 11 — — 11 Total assets $ 13 $ — $ — $ 13 $ 13 $ — $ — $ 13 (1) Amounts are included in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. Items Measured at Fair Value on a Nonrecurring Basis Based on the severity of the decline in Enable’s common unit price during the three months ended March 31, 2020 primarily due to the macroeconomic conditions related in part to the COVID-19 pandemic, combined with Enable’s announcement on April 1, 2020 to reduce its quarterly distributions per common unit by 50%, and the market outlook indicating excess supply and continued depressed crude oil and natural gas prices impacting the midstream oil and gas industry, CenterPoint Energy determined, in connection with its preparation of the financial statements, that an other than temporary decrease in the value of its investment in Enable had occurred. The impairment analysis compared the estimated fair value of CenterPoint Energy’s investment in Enable to its carrying value. The fair value of the investment was determined using multiple valuation methodologies under both the market and income approaches. Both of these approaches incorporate significant estimates and assumptions, including: Market Approach • quoted price of Enable’s common units; • recent market transactions of comparable companies; and • EBITDA to total enterprise multiples for comparable companies. Income Approach • Enable’s forecasted cash distributions; • projected cash flows of incentive distribution rights; • forecasted growth rate of Enable’s cash distributions; and • determination of the cost of equity, including market risk premiums. Weighting of the Different Approaches Significant unobservable inputs used include the growth rate applied to the projected cash distributions beyond 2020 and the discount rate used to determine the present value of the estimated future cash flows. Based on the significant unobservable estimates and assumptions required, CenterPoint Energy concluded that the fair value estimate should be classified as a Level 3 measurement within the fair value hierarchy. As a result of this analysis, CenterPoint Energy recorded an other than temporary impairment on its investment in Enable of $1,541 million during the nine months ended September 30, 2020, reducing the fair value of the investment to $848 million as of March 31, 2020. See Note 9 for further discussion of the impairment. In the nine months ended September 30, 2020, CenterPoint Energy recorded a goodwill impairment charge of $185 million in the Indiana Electric Integrated reporting unit, reducing the carrying value of the reporting unit to its fair value as of March 31, 2020. CenterPoint Energy and CERC performed their annual goodwill impairment tests in the third quarter of 2020 and determined that no goodwill impairment charge was required for any reporting unit as a result of those tests. See Note 10 for further information. As a result of classifying the Infrastructure Services and Energy Services Disposal Groups as held for sale, CenterPoint Energy and CERC recognized a goodwill impairment and loss on held for sale during the nine months ended September 30, 2020. CenterPoint Energy and CERC, as applicable, used the contractual sales price adjusted for estimated working capital and other contractual purchase price adjustments to determine fair value, which are Level 2 inputs. Using this market approach, the fair value of the Infrastructure Services Disposal Group as of March 31, 2020 was determined to be approximately $864 million and the fair value of the Energy Services Disposal Group as of March 31, 2020 was determined to be approximately $402 million. The same methodology was applied to estimate the fair value of the Infrastructure Services Disposal Group and Energy Services Disposal Group on the closing date and as of September 30, 2020. See Note 3 for further information. Estimated Fair Value of Financial Instruments The fair values of cash and cash equivalents, investments in debt and equity securities classified as “trading” and short-term borrowings are estimated to be approximately equivalent to carrying amounts and have been excluded from the table below. The carrying amounts of non-trading derivative assets and liabilities and CenterPoint Energy’s ZENS indexed debt securities derivative are stated at fair value and are excluded from the table below. The fair value of each debt instrument is determined by multiplying the principal amount of each debt instrument by a combination of historical trading prices and comparable issue data. These liabilities, which are not measured at fair value in the Registrants’ Condensed Consolidated Balance Sheets, but for which the fair value is disclosed, would be classified as Level 2 in the fair value hierarchy. September 30, 2020 December 31, 2019 Carrying Fair Carrying Fair (in millions) CenterPoint Energy Long-term debt, including current maturities (1) $ 13,268 $ 14,982 $ 15,093 $ 16,067 Houston Electric Long-term debt, including current maturities (1) $ 5,089 $ 5,968 $ 4,950 $ 5,457 CERC Long-term debt, including current maturities $ 2,582 $ 2,973 $ 2,546 $ 2,803 (1) Includes Securitization Bonds debt. |
Unconsolidated Affiliate (Cente
Unconsolidated Affiliate (CenterPoint Energy and CERC) | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Unconsolidated Affiliates (CenterPoint Energy and CERC) [Text Block] | Unconsolidated Affiliates (CenterPoint Energy and CERC) CenterPoint Energy has the ability to significantly influence the operating and financial policies of Enable, a publicly traded MLP, and, accordingly, accounts for its investment in Enable’s common units using the equity method of accounting. Enable is considered to be a VIE because the power to direct the activities that most significantly impact Enable’s economic performance does not reside with the holders of equity investment at risk. However, CenterPoint Energy is not considered the primary beneficiary of Enable since it does not have the power to direct the activities of Enable that are considered most significant to the economic performance of Enable. As of September 30, 2020, CenterPoint Energy’s maximum exposure to loss related to Enable is limited to its investment in unconsolidated affiliate, its investment in Enable Series A Preferred Units, which are accounted for as securities without a readily determinable fair value, and outstanding current accounts receivable from Enable. Investment in Unconsolidated Affiliates (CenterPoint Energy): September 30, 2020 December 31, 2019 (in millions) Enable $ 748 $ 2,406 Other 1 2 Total $ 749 $ 2,408 CenterPoint Energy evaluates its equity method investments for impairment when factors indicate that a decrease in the value of its investment has occurred and the carrying amount of its investment may not be recoverable. An impairment loss, based on the excess of the carrying value over the estimated fair value of the investment, is recognized in earnings when an impairment is deemed to be other than temporary. Considerable judgment is used in determining if an impairment loss is other than temporary and the amount of any impairment. Based on the severity of the decline in Enable’s common unit price during the three months ended March 31, 2020 due to the macroeconomic conditions related in part to the COVID-19 pandemic, combined with Enable’s announcement on April 1, 2020 to reduce its quarterly distributions per common unit by 50%, and the market outlook indicating excess supply of crude oil and natural gas and continued depressed crude oil and natural gas prices impacting the midstream oil and gas industry, CenterPoint Energy determined, in connection with its preparation of the financial statements, that an other than temporary decrease in the value of its investment in Enable had occurred. CenterPoint Energy reduced the carrying value of its investment in Enable to its estimated fair value of $848 million as of March 31, 2020 and recognized an impairment charge of $1,541 million during the nine months ended September 30, 2020. Both the income approach and market approach were utilized to estimate the fair value of CenterPoint Energy’s equity investment in Enable, which includes common units, general partner interest and incentive distribution rights held by CenterPoint Energy through CNP Midstream. The determination of fair value considered a number of relevant factors including Enable’s common unit price and forecasted distributions, recent comparable transactions and the limited float of Enable’s publicly traded common units. See Note 8 for further discussion of the determination of fair value of CenterPoint Energy’s investment in Enable as of March 31, 2020. CenterPoint Energy did not identify a further decrease in value as of September 30, 2020, and no impairment in its investment in Enable was recorded during the three months ended September 30, 2020. Equity in Earnings (Losses) of Unconsolidated Affiliates, net (CenterPoint Energy): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Enable $ (67) $ 77 $ (1,499) $ 213 Other — — — — Total $ (67) $ 77 $ (1,499) $ 213 CenterPoint Energy recognized a loss of $1,499 million from its investment in Enable for the nine months ended September 30, 2020. This loss included an impairment charge on CenterPoint Energy’s investment in Enable of $1,541 million discussed above, and CenterPoint Energy’s interest in Enable’s $225 million impairment on an equity method investment. Limited Partner Interest and Units Held in Enable (CenterPoint Energy): September 30, 2020 Limited Partner Interest (1) Common Units (2) Enable Series A Preferred Units (3) CenterPoint Energy 53.7 % 233,856,623 14,520,000 OGE 25.5 % 110,982,805 — Public unitholders 20.8 % 90,629,240 — Total units outstanding 100.0 % 435,468,668 14,520,000 (1) Excludes the Enable Series A Preferred Units owned by CenterPoint Energy. (2) Held indirectly through CNP Midstream by CenterPoint Energy. (3) The carrying amount of the Enable Series A Preferred Units, reflected as Preferred units - unconsolidated affiliate on CenterPoint Energy’s Condensed Consolidated Balance Sheets, was $363 million as of both September 30, 2020 and December 31, 2019. No impairment charges or adjustment due to observable price changes were required or recorded during the current or prior reporting periods. Generally, sales to any person or entity (including a series of sales to the same person or entity) of more than 5% of the aggregate of the common units CenterPoint Energy owns in Enable or sales to any person or entity (including a series of sales to the same person or entity) by OGE of more than 5% of the aggregate of the common units it owns in Enable are subject to mutual rights of first offer and first refusal set forth in Enable’s Agreement of Limited Partnership. Interests Held in Enable GP (CenterPoint Energy): September 30, 2020 Management Rights (1) Incentive Distribution Rights (2) CenterPoint Energy (3) 50 % 40 % OGE 50 % 60 % (1) Enable is controlled jointly by CenterPoint Energy and OGE. Sale of CenterPoint Energy’s or OGE’s ownership interests in Enable GP to a third party is subject to mutual rights of first offer and first refusal, and CenterPoint Energy is not permitted to dispose of less than all of its interest in Enable GP. (2) If cash distributions to Enable’s unitholders exceed $0.330625 per common unit in any quarter, Enable GP will receive increasing percentages or incentive distributions rights, up to 50%, of the cash Enable distributes in excess of that amount. In certain circumstances Enable GP will have the right to reset the minimum quarterly distribution and the target distribution levels at which the incentive distributions receive increasing percentages to higher levels based on Enable’s cash distributions at the time of the exercise of this reset election. To date, no incentive distributions have been made. (3) Held indirectly through CNP Midstream. Distributions Received from Enable (CenterPoint Energy): CenterPoint Energy Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Per Unit Cash Distribution Per Unit Cash Distribution Per Unit Cash Distribution Per Unit Cash Distribution (in millions, except per unit amounts) Enable common units (1) $ 0.16525 $ 39 $ 0.3305 $ 77 $ 0.6610 $ 155 $ 0.9665 $ 226 Enable Series A Preferred Units 0.62500 9 0.6250 9 1.8750 27 1.8750 27 Total CenterPoint Energy $ 48 $ 86 $ 182 $ 253 (1) On April 1, 2020, Enable announced a 50% reduction in its quarterly distribution per common unit from $0.3305 to $0.16525. Transactions with Enable (CenterPoint Energy and CERC): The transactions with Enable in the following tables exclude transactions with the Energy Services Disposal Group. See Note 3 for further information. CenterPoint Energy and CERC Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Natural gas expenses, includes transportation and storage costs $ 17 $ 17 $ 61 $ 62 CenterPoint Energy and CERC September 30, 2020 December 31, 2019 (in millions) Accounts payable for natural gas purchases from Enable $ 6 $ 9 Accounts receivable for amounts billed for services provided to Enable 1 2 Summarized unaudited consolidated income information for Enable is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Operating revenues $ 596 $ 699 $ 1,759 $ 2,229 Cost of sales, excluding depreciation and amortization 250 263 653 958 Depreciation and amortization 105 108 314 323 Goodwill and long-lived assets impairments — — 28 — Operating income 100 175 326 507 Net income (loss) attributable to Enable common units (173) 123 (35) 351 Reconciliation of Equity in Earnings (Losses), net: CenterPoint Energy’s interest $ (93) $ 66 $ (19) $ 189 Basis difference amortization (1) 26 11 62 35 Loss on dilution, net of proportional basis difference recognition — — (1) (11) Impairment of CenterPoint Energy’s equity method investment in Enable — — (1,541) — CenterPoint Energy’s equity in earnings (losses), net $ (67) $ 77 $ (1,499) $ 213 (1) Equity in earnings of unconsolidated affiliate includes CenterPoint Energy’s share of Enable earnings adjusted for the amortization of the basis difference of CenterPoint Energy’s original investment in Enable and its underlying equity in net assets of Enable. The basis difference is being amortized through the year 2048. Summarized unaudited consolidated balance sheet information for Enable is as follows: September 30, 2020 December 31, 2019 (in millions) Current assets $ 373 $ 389 Non-current assets 11,402 11,877 Current liabilities 644 780 Non-current liabilities 4,055 4,077 Non-controlling interest 26 37 Preferred equity 362 362 Accumulated other comprehensive loss (7) (3) Enable partners’ equity 6,695 7,013 Reconciliation of Investment in Enable: CenterPoint Energy’s ownership interest in Enable partners’ equity $ 3,592 $ 3,767 CenterPoint Energy’s basis difference (1) (2,844) (1,361) CenterPoint Energy’s equity method investment in Enable $ 748 $ 2,406 (1) Includes the impairment of CenterPoint Energy’s equity method investment in Enable of $1,541 million recorded during the nine months ended September 30, 2020. The basis difference is being amortized through the year 2048. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (CenterPoint Energy and CERC) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles (CenterPoint Energy and CERC) [Text Block] | Goodwill and Other Intangibles (CenterPoint Energy and CERC) Goodwill and intangible assets related to the Infrastructure Services and Energy Services Disposal Groups are classified as held for sale on CenterPoint Energy’s and CERC’s respective recast Condensed Consolidated Balance Sheets as of December 31, 2019, as applicable, and are excluded from the tabular disclosures below. See Note 3 for further information. CenterPoint Energy’s goodwill by reportable segment as of September 30, 2020 and December 31, 2019 is as follows: December 31, 2019 Impairment September 30, 2020 (in millions) Indiana Electric Integrated (1) $ 1,121 $ 185 $ 936 Natural Gas Distribution 3,312 — 3,312 Corporate and Other 449 — 449 Total $ 4,882 $ 185 $ 4,697 (1) CenterPoint Energy recognized a non-cash goodwill impairment charge as a result of the March 31, 2020 goodwill impairment test. CERC’s goodwill by reportable segment as of September 30, 2020 and December 31, 2019 is as follows: (in millions) Natural Gas Distribution $ 746 Corporate and Other 11 Total $ 757 CenterPoint Energy and CERC perform goodwill impairment tests at least annually and evaluate goodwill when events or changes in circumstances indicate that its carrying value may not be recoverable. The impairment evaluation for goodwill is performed by comparing the fair value of each reporting unit with the carrying amount of the reporting unit, including goodwill. The reporting units approximate the reportable segments, with the exception of ESG, which is a separate reporting unit but included in Corporate and Other at CenterPoint Energy. The estimated fair value of the reporting unit is primarily determined based on an income approach or a weighted combination of income and market approaches. If the carrying amount is in excess of the estimated fair value of the reporting unit, then the excess amount is recorded as an impairment charge, not to exceed the carrying amount of goodwill. In connection with their preparation of the financial statements for the three months ended March 31, 2020, CenterPoint Energy and CERC identified triggering events to perform interim goodwill impairment tests for each of their reporting units due to the macroeconomic conditions related in part to the COVID-19 pandemic and the resulting decrease in CenterPoint Energy’s enterprise market capitalization below book value from the decline in CenterPoint Energy’s Common Stock price. CenterPoint Energy’s interim impairment test in the three months ended March 31, 2020 resulted in a non-cash goodwill impairment charge in the amount of $185 million for the Indiana Electric Integrated reportable segment. The Indiana Electric Integrated reporting unit fair value analysis resulted in an implied fair value of goodwill of $936 million for this reporting unit as of March 31, 2020, and as a result, the non-cash impairment charge was recorded in the nine months ended September 30, 2020. CenterPoint Energy estimated the value of the Indiana Electric Integrated reporting unit using primarily an income approach. Under the income approach, the fair value of the reporting unit is determined by using the present value of future expected cash flows, which include management’s projections of the amount and timing of future capital expenditures and the cash inflows from the related regulatory recovery. These estimated future cash flows are then discounted using a rate that approximates the weighted average cost of capital of a market participant. The selection of the discount rate requires significant judgment. With the exception of Indiana Electric Integrated discussed above, the fair value of each of CenterPoint Energy’s and CERC’s reporting units exceeded their carrying value, resulting in no goodwill impairment from the March 31, 2020 interim impairment test. See Note 3 for goodwill impairments included within discontinued operations. CenterPoint Energy and CERC performed their annual goodwill impairment tests in the third quarter of 2020 and determined that no goodwill impairment charge was required for any reporting unit as a result of those tests. The tables below present information on CenterPoint Energy’s other intangible assets recorded in Other non-current assets on CenterPoint Energy’s Condensed Consolidated Balance Sheets and the related amortization expense included in Depreciation and amortization on CenterPoint Energy’s Condensed Statements of Consolidated Income, unless otherwise indicated. September 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance (in millions) Customer relationships $ 33 $ (7) $ 26 $ 33 $ (4) $ 29 Trade names 16 (3) 13 16 (1) 15 Construction backlog (1) 5 (4) 1 5 (4) 1 Operation and maintenance agreements (1) 12 (1) 11 12 — 12 Other 2 (1) 1 2 (1) 1 Total $ 68 $ (16) $ 52 $ 68 $ (10) $ 58 (1) Amortization expense related to the operation and maintenance agreements and construction backlog is included in Non-utility cost of revenues, including natural gas on CenterPoint Energy’s Condensed Statements of Consolidated Income. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Amortization expense of intangible assets recorded in Depreciation and amortization (1) $ 2 $ 1 $ 5 $ 2 Amortization expense of intangible assets recorded in Non-utility cost of revenues, including natural gas (1) — 1 1 4 (1) Assets held for sale are not amortized. The table reflects amortization on continuing operations. For further information on discontinued operations, see Note 3. CenterPoint Energy estimates that amortization expense of intangible assets with finite lives for the next five years will be as follows: Amortization Expense (1) CenterPoint Energy (in millions) Remaining three months of 2020 $ 2 2021 6 2022 6 2023 6 2024 5 2025 5 (1) Assets held for sale are not amortized. The table reflects amortization on continuing operations. For further information on discontinued operations, see Note 3. |
Indexed Debt Securities (ZENS)
Indexed Debt Securities (ZENS) and Securities Related to ZENS (CenterPoint Energy) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Indexed Debt Securities (ZENS) and Securities Related to ZENS (CenterPoint Energy) [Text Block] | Indexed Debt Securities (ZENS) and Securities Related to ZENS (CenterPoint Energy) (a) Investment in Securities Related to ZENS A subsidiary of CenterPoint Energy holds shares of certain securities detailed in the table below, which are securities with a readily determinable fair value and are expected to be held to facilitate CenterPoint Energy’s ability to meet its obligation under the ZENS. Unrealized gains and losses resulting from changes in the market value of the ZENS-Related Securities are recorded in CenterPoint Energy’s Condensed Statements of Consolidated Income. Shares Held September 30, 2020 December 31, 2019 AT&T Common 10,212,945 10,212,945 Charter Common 872,503 872,503 (b) ZENS In September 1999, CenterPoint Energy issued ZENS having an original principal amount of $1.0 billion of which $828 million remained outstanding as of September 30, 2020. Each ZENS is exchangeable at the holder’s option at any time for an amount of cash equal to 95% of the market value of the reference shares attributable to such note. The number and identity of the reference shares attributable to each ZENS are adjusted for certain corporate events. CenterPoint Energy’s reference shares for each ZENS consisted of the following: September 30, 2020 December 31, 2019 (in shares) AT&T Common 0.7185 0.7185 Charter Common 0.061382 0.061382 CenterPoint Energy pays interest on the ZENS at an annual rate of 2% plus the amount of any quarterly cash dividends paid in respect of the reference shares attributable to the ZENS. The principal amount of the ZENS is subject to increases or decreases to the extent that the annual yield from interest and cash dividends on the reference shares attributable to the ZENS is less than or more than 2.309%. The adjusted principal amount is defined in the ZENS instrument as “contingent principal.” As of September 30, 2020, the ZENS, having an original principal amount of $828 million and a contingent principal amount of $61 million, were outstanding and were exchangeable, at the option of the holders, for cash equal to 95% of the market value of the reference shares attributable to the ZENS. |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | Long-term Debt Debt Transactions. In June 2020, Houston Electric issued $300 million aggregate principal amount of 2.90% general mortgage bonds maturing in 2050. Total proceeds, net of issuance expenses and fees, of approximately $296 million were used for general limited liability company purposes, including capital expenditures and the repayment of a portion of borrowings under the CenterPoint Energy money pool. In September 2020, SIGECO completed the remarketing of two series of tax-exempt debt of approximately $38 million, comprised of: (i) $23 million aggregate principal amount of Environmental Improvement Revenue Bonds, Series 2015, issued by the City of Mount Vernon, Indiana, and (ii) $15 million aggregate principal amount of Environmental Improvement Revenue Bonds, Series 2015, issued by Warrick County, Indiana, that, in each case, were originally issued on September 9, 2015. Both series of revenue bonds originally had an initial term interest rate of 2.375%. After the remarketing, each series of revenue bonds have a new term interest rate of 0.875% that is fixed through August 31, 2023. Each series of revenue bonds have a final maturity date of September 1, 2055, subject to prior redemption. In October 2020, CERC Corp. issued $500 million aggregate principal amount of 1.75% senior notes due 2030. Total proceeds, net of issuance expenses and fees, of approximately $495 million were used for general corporate purposes, including the payment of a portion of the redemption amount of CERC Corp.’s 4.50% senior notes due 2021 redeemed in full on October 15, 2020. Debt Repayments. In April 2020, VCC repaid the aggregate principal amount of its $200 million variable term loan, and VUHI refinanced a $100 million 6.28% guaranteed senior note that matured in April 2020. In June 2020, VUHI repaid the aggregate principal amount of its $300 million variable term loan. In addition, in June 2020, CenterPoint Energy repaid $300 million of principal on its outstanding $1.0 billion variable rate term loan. Debt Redemption. In September 2020, CERC Corp. provided notice of redemption relating to $593 million aggregate principal amount of CERC Corp.’s outstanding 4.50% Senior Notes due 2021, Series A and B. All of the outstanding senior notes were redeemed in full in October 2020 at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest to, but excluding, the redemption date. Credit Facilities . The Registrants had the following revolving credit facilities as of September 30, 2020: Execution Registrant Size of Draw Rate of LIBOR plus (1) Financial Covenant Limit on Debt for Borrowed Money to Capital Ratio Debt for Borrowed Money to Capital Ratio as of September 30, 2020 (2) Termination Date (in millions) March 3, 2016 CenterPoint Energy $ 3,300 1.500% 65% (3) 53.4% March 3, 2022 July 14, 2017 CenterPoint Energy (4) 400 1.125% 65% 52.5% July 14, 2022 March 3, 2016 Houston Electric 300 1.250% 65% (3) 53.2% March 3, 2022 March 3, 2016 CERC 900 1.125% 65% 52.7% March 3, 2022 Total $ 4,900 (1) Based on current credit ratings. (2) As defined in the revolving credit facility agreements, excluding Securitization Bonds. (3) For CenterPoint Energy and Houston Electric, the financial covenant limit will temporarily increase from 65% to 70% if Houston Electric experiences damage from a natural disaster in its service territory and CenterPoint Energy certifies to the administrative agent that Houston Electric has incurred system restoration costs reasonably likely to exceed $100 million in a consecutive 12-month period, all or part of which Houston Electric intends to seek to recover through securitization financing. Such temporary increase in the financial covenant would be in effect from the date CenterPoint Energy delivers its certification until the earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of CenterPoint Energy’s certification or (iii) the revocation of such certification. (4) This credit facility was issued by VUHI, is guaranteed by SIGECO, Indiana Gas and VEDO and includes a $10 million swing line sublimit and a $20 million letter of credit sublimit. This credit facility backstops VUHI’s commercial paper program. On September 30, 2020, VCC terminated its $200 million credit agreement dated as of July 14, 2017 after determining that it was no longer necessary for financing purposes. VCC did not incur any penalties in connection with the early termination. The Registrants, including the subsidiaries of CenterPoint Energy discussed above, were in compliance with all financial debt covenants as of September 30, 2020. The table below reflects the utilization of the Registrants’ respective revolving credit facilities: September 30, 2020 December 31, 2019 Registrant Loans Letters Commercial Weighted Average Interest Rate Loans Letters Commercial Weighted Average Interest Rate (in millions, except weighted average interest rate) CenterPoint Energy (1) $ — $ 8 $ 638 0.19 % $ — $ 6 $ 1,633 1.95 % CenterPoint Energy (2) — — 176 0.19 % — — 268 2.08 % Houston Electric — — — — % — — — — % CERC — — 407 0.17 % — 1 377 1.94 % Total $ — $ 8 $ 1,221 $ — $ 7 $ 2,278 (1) CenterPoint Energy’s outstanding commercial paper generally has maturities of 60 days or less. (2) This credit facility was issued by VUHI and is guaranteed by SIGECO, Indiana Gas and VEDO. Other. As of September 30, 2020, certain financial institutions agreed to issue, from time to time, up to $50 million of letters of credit on behalf of Vectren and certain of its subsidiaries in exchange for customary fees. These agreements to issue letters of credit expire on December 31, 2020. As of September 30, 2020, such financial institutions had issued $7 million of letters of credit on behalf of Vectren and certain of its subsidiaries. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Text Block] | Income Taxes The Registrants reported the following effective tax rates: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 CenterPoint Energy - Continuing operations (1) (2) (9) % 15 % 29 % 12 % CenterPoint Energy - Discontinued operations (3) (4) — % 46 % (13) % 30 % Houston Electric (5) 14 % 18 % 15 % 18 % CERC - Continuing operations (6) (7) 60 % 23 % 13 % 9 % CERC - Discontinued operations (8) (9) 33 % 40 % 3 % 21 % (1) CenterPoint Energy’s lower effective tax rate on income from continuing operations for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 was primarily driven by the recognition of additional tax benefit for increased NOL carryback claims under the CARES Act and the effects of the lower book earnings on other rate drivers in the three months ended September 30, 2020. (2) CenterPoint Energy’s higher effective tax rate on the loss from continuing operations for the nine months ended September 30, 2020 compared to the income from continuing operations for the nine months ended September 30, 2019 was primarily due to lower earnings from the impairment of CenterPoint Energy’s investment in Enable. Other effective tax rate drivers include the tax benefit for the NOL carryback claims under the CARES Act, which was partially offset by the non-deductible goodwill impairment at the Indiana Electric Integrated reporting unit. (3) CenterPoint Energy’s lower effective tax rate on the loss from discontinued operations for the three months ended September 30, 2020 compared to the income from discontinued operations for the three months ended September 30, 2019 was primarily due to lower book earnings in the three months ended September 30, 2020. (4) CenterPoint Energy’s lower effective tax rate on the loss from discontinued operations for the nine months ended September 30, 2020 compared to the income from discontinued operations for the nine months ended September 30, 2019 was primarily due to the tax impacts from the sale of the Infrastructure Services Disposal Group on April 9, 2020 and the sale of the Energy Services Disposal Group on June 1, 2020, the effect of which was compounded by lower book earnings in the nine months ended September 30, 2020. See Note 3 for further information. (5) Houston Electric’s lower effective tax rate for the three and nine months ended September 30, 2020 compared to the same periods for 2019 was primarily due to an increase in the amount of amortization of the net regulatory EDIT liability. (6) CERC’s higher effective tax rate on the loss from continuing operations for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 was driven by an increase in the amount of amortization of the net regulatory EDIT liability and a larger return-to-accrual tax benefit recognized in the three months ended September 30, 2020. These were partially offset by the absence of state deferred tax benefits as a result of certain state tax law changes and the release of a valuation allowance on certain state NOLs that were reported in the three months ended September 30, 2019. (7) CERC’s higher effective tax rate on income from continuing operations for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 was driven by the absence of state deferred tax benefits as a result of certain state tax law changes and the release of a valuation allowance on certain state NOLs that were reported in the nine months ended September 30, 2019. These were partially offset by an increase in the amount of amortization of the net regulatory EDIT liability and a larger return-to-accrual tax benefit recognized in the nine months ended September 30, 2020. (8) CERC’s lower effective tax rate on income from discontinued operations for the three months ended September 30, 2020 compared to the income from discontinued operations for the three months ended September 30, 2019 was primarily due to lower book earnings in the three months ended September 30, 2020. (9) CERC’s lower effective tax rate on the loss from discontinued operations for the nine months ended September 30, 2020 compared to the income from discontinued operations for the nine months ended September 30, 2019 was primarily due to the tax impacts of the sale of the Energy Services Disposal Group on June 1, 2020, the effect of which was compounded by lower book earnings in the nine months ended September 30, 2020. See Note 3 for further information. On March 27, 2020, the CARES Act was enacted in response to the COVID-19 pandemic. The CARES Act provides relief to corporate taxpayers by permitting a five-year carryback of 2018-2020 NOLs, deferring the payment of the employer share of payroll taxes for the remaining months of 2020 until 2021 and 2022, increasing the 30% limitation on interest expense deductibility to 50% of adjusted taxable income for 2019 and 2020, and accelerating refunds for minimum tax credit carryforwards, among other provisions. As such, during the nine months ended September 30, 2020, CenterPoint Energy recorded a $37 million benefit resulting from carryback claims to be filed to refund taxes paid. CenterPoint Energy reported a net uncertain tax liability, inclusive of interest and penalties, of $9 million as of September 30, 2020. The reserve has net zero change for the nine month period ending September 30, 2020. The Registrants believe that it is reasonably possible that a decrease of up to $5 million in unrecognized tax benefits may occur in the next 12 months as a result of a lapse of statutes on older exposures and/or the filing of applications for accounting method changes. For CenterPoint Energy, tax years through 2018 have been audited and settled with the IRS. For the 2019 and 2020 tax years, CenterPoint Energy is a participant in the IRS’s Compliance Assurance Process. Legacy Vectren is not currently under audit with the IRS, and the 2017-2019 tax years are still open for examination. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Text Block] | Commitments and Contingencies (a) Purchase Obligations (CenterPoint Energy and CERC) Commitments include minimum purchase obligations related to CenterPoint Energy’s and CERC’s Natural Gas Distribution reportable segment and CenterPoint Energy’s Indiana Electric Integrated reportable segment. Contracts with minimum payment provisions have various quantity requirements and durations and are not classified as non-trading derivative assets and liabilities in CenterPoint Energy’s and CERC’s Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019. These contracts meet an exception as “normal purchases contracts” or do not meet the definition of a derivative. Natural gas and coal supply commitments also include transportation contracts that do not meet the definition of a derivative. As of September 30, 2020, minimum purchase obligations are approximately: CenterPoint Energy CERC (in millions) Remaining three months of 2020 $ 224 $ 163 2021 662 486 2022 496 325 2023 418 271 2024 340 246 2025 290 220 2026 and beyond 1,817 1,496 Indiana Electric Integrated also has other purchased power agreements that do not have minimum thresholds but require payment when energy is generated by the provider. Costs arising from certain of these commitments are pass-through costs, generally collected dollar-for-dollar from retail customers through regulator-approved cost recovery mechanisms. CenterPoint Energy’s and CERC’s NGD have AMAs associated with their utility distribution service in Arkansas, Louisiana and Oklahoma with the Energy Services Disposal Group and in Arkansas, Indiana, Louisiana, Mississippi and Texas with other third parties. The AMAs have varying terms, the longest of which expires in 2023. For further information regarding the AMAs with the Energy Services Disposal Group, see Note 3. (b) Guarantees and Product Warranties (CenterPoint Energy) In the normal course of business, ESG enters into contracts requiring it to timely install infrastructure, operate facilities, pay vendors and subcontractors and support warranty obligations and, at times, issue payment and performance bonds and other forms of assurance in connection with these contracts. Specific to ESG’s role as a general contractor in the performance contracting industry, as of September 30, 2020, there were 60 open surety bonds supporting future performance with an aggregate face amount of approximately $568 million. ESG’s exposure is less than the face amount of the surety bonds and is limited to the level of uncompleted work under the contracts. As of September 30, 2020, approximately 21% of the work was yet to be completed on projects with open surety bonds. Further, various subcontractors issue surety bonds to ESG. In addition to these performance obligations, ESG also warrants the functionality of certain installed infrastructure generally for one year and the associated energy savings over a specified number of years. Since ESG’s inception in 1994, CenterPoint Energy believes ESG has had a history of generally meeting its performance obligations and energy savings guarantees and its installed products operating effectively. CenterPoint Energy assessed the fair value of its obligation for such guarantees as of September 30, 2020 and no amounts were recorded on CenterPoint Energy’s Condensed Consolidated Balance Sheets. CenterPoint Energy issues parent company level guarantees to certain vendors, customers and other commercial counterparties of ESG. These guarantees do not represent incremental consolidated obligations, but rather, represent guarantees of subsidiary obligations to allow those subsidiaries to conduct business without posting other forms of assurance. As of September 30, 2020, CenterPoint Energy, primarily through Vectren, has issued parent company level guarantees supporting ESG’s obligations. For those obligations where potential exposure can be estimated, management estimates the maximum exposure under these guarantees to be approximately $519 million as of September 30, 2020. This exposure primarily relates to energy savings guarantees on federal energy savings performance contracts. Other parent company level guarantees, certain of which do not contain a cap on potential liability, have been issued in support of federal operations and maintenance projects for which a maximum exposure cannot be estimated based on the nature of the projects. While there can be no assurance that performance under any of these parent company guarantees will not be required in the future, CenterPoint Energy considers the likelihood of a material amount being incurred as remote. (c) Guarantees and Product Warranties (CenterPoint Energy and CERC) On February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell the Energy Services Disposal Group. The transaction closed on June 1, 2020. In the normal course of business prior to June 1, 2020, the Energy Services Disposal Group through CES, traded natural gas under supply contracts and entered into natural gas related transactions under transportation, storage and other contracts. In connection with the Energy Services Disposal Group’s business activities prior to the closing of the sale of the Energy Services Disposal Group on June 1, 2020, CERC Corp. issued guarantees to CES’s counterparties to guarantee the payment of CES’s obligations. When CES remained wholly owned by CERC Corp., these guarantees did not represent incremental consolidated obligations, but rather, these guarantees represented guarantees of CES’s obligations to allow it to conduct business without posting other forms of assurance. A CERC Corp. guarantee primarily has a one- or two-year term, although CERC Corp. would generally not be released from obligations incurred by CES prior to the termination of such guarantee unless the beneficiary of the guarantee affirmatively released CERC Corp. from its obligations under the guarantee. Throughout CERC Corp.’s ownership of CES and subsequent to the sale of the Energy Services Disposal Group through September 30, 2020, CERC Corp. did not pay any amounts under guarantees of CES’s obligations. Under the terms of the Equity Purchase Agreement, Symmetry Energy Solutions Acquisition must generally use reasonable best efforts to replace existing CERC Corp. guarantees with credit support provided by a party other than CERC Corp. as of and after the closing of the transaction. Additionally, to the extent that CERC Corp. retains any exposure relating to certain guarantees of CES’s obligations 90 days after closing of the transaction, Symmetry Energy Solutions Acquisition will pay a 3% annualized fee on such exposure, increasing by 1% on an annualized basis every three months. As of September 30, 2020, CES had provided replacement credit support to counterparties to whom CERC Corp. had issued guarantees prior to June 1, 2020, representing $68 million of the $73 million remaining exposure under the previously issued guarantees. CERC believes that counterparties to whom replacement credit support has been provided would seek payment if needed under such replacement credit support instead of a CERC Corp. guarantee. No additional guarantees were provided by CERC Corp. to CES subsequent to the closing of the transaction on June 1, 2020. While there can be no assurance that payment under any of these guarantees will not be required in the future, CenterPoint Energy and CERC consider the likelihood of a material amount being incurred as remote. CenterPoint Energy and CERC recorded no amounts on their respective Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019 related to the performance of these guarantees. (d) Legal, Environmental and Other Matters Legal Matters Minnehaha Academy (CenterPoint Energy and CERC). On August 2, 2017, a natural gas explosion occurred at the Minnehaha Academy in Minneapolis, Minnesota, resulting in the deaths of two school employees, serious injuries to others and significant property damage to the school. CenterPoint Energy, certain of its subsidiaries, including CERC, and the contractor company working in the school have been named in litigation arising out of this incident. CenterPoint Energy and CERC have reached confidential settlement agreements on all wrongful death and property damage claims and with some personal injury claimants. Additionally, CenterPoint Energy and CERC cooperated with the investigation conducted by the National Transportation Safety Board, which concluded its investigation in December 2019 and issued a report without making any recommendations. Further, CenterPoint Energy and CERC contested and reached a settlement regarding approximately $200,000 in fines imposed by the Minnesota Office of Pipeline Safety. In early 2018, the Minnesota Occupational Safety and Health Administration concluded its investigation without any adverse findings against CenterPoint Energy or CERC. CenterPoint Energy’s and CERC’s general and excess liability insurance policies provide coverage for third party bodily injury and property damage claims. Litigation Related to the Merger (CenterPoint Energy). With respect to the Merger, in July 2018, seven separate lawsuits were filed against Vectren and the individual directors of Vectren’s Board of Directors in the U.S. District Court for the Southern District of Indiana. These lawsuits alleged violations of Sections 14(a) of the Exchange Act and SEC Rule 14a-9 on the grounds that the Vectren Proxy Statement filed on June 18, 2018 was materially incomplete because it omitted material information concerning the Merger. In August 2018, the seven lawsuits were consolidated, and the Court denied the plaintiffs’ request for a preliminary injunction. In October 2018, the plaintiffs filed their Consolidated Amended Class Action Complaint. In December 2018, two plaintiffs voluntarily dismissed their lawsuits. In September 2019, the court granted the defendants’ motion to dismiss and dismissed the remaining plaintiffs’ claims with prejudice, which the plaintiffs appealed in October 2019. The U.S. Court of Appeals for the Seventh Circuit heard oral arguments in September 2020, and a ruling is expected in late 2020 or early 2021. The defendants believe that the allegations asserted are without merit and intend to vigorously defend themselves against the claims raised. CenterPoint Energy does not expect the ultimate outcome of this matter to have a material adverse effect on its financial condition, results of operations or cash flows. Environmental Matters MGP Sites. CenterPoint Energy, CERC and their predecessors operated MGPs in the past. In addition, certain of CenterPoint Energy’s subsidiaries acquired through the Merger operated MGPs in the past. The costs CenterPoint Energy or CERC, as applicable, expect to incur to fulfill their respective obligations are estimated by management using assumptions based on actual costs incurred, the timing of expected future payments and inflation factors, among others. While CenterPoint Energy and CERC have recorded all costs which they presently are obligated to incur in connection with activities at these sites, it is possible that future events may require remedial activities which are not presently foreseen, and those costs may not be subject to PRP or insurance recovery. (i) Minnesota MGPs (CenterPoint Energy and CERC) . With respect to certain Minnesota MGP sites, CenterPoint Energy and CERC have completed state-ordered remediation and continue state-ordered monitoring and water treatment. CenterPoint Energy and CERC recorded a liability as reflected in the table below for continued monitoring and any future remediation required by regulators in Minnesota. (ii) Indiana MGPs (CenterPoint Energy) . In the Indiana Gas service territory, the existence, location and certain general characteristics of 26 gas manufacturing and storage sites have been identified for which CenterPoint Energy may have some remedial responsibility. A remedial investigation/feasibility study was completed at one of the sites under an agreed upon order between Indiana Gas and the IDEM, and a Record of Decision was issued by the IDEM in January 2000. The remaining sites have been submitted to the IDEM’s VRP. CenterPoint Energy has also identified its involvement in five manufactured gas plant sites in SIGECO’s service territory, all of which are currently enrolled in the IDEM’s VRP. CenterPoint Energy is currently conducting some level of remedial activities, including groundwater monitoring at certain sites. (iii) Other MGPs (CenterPoint Energy and CERC). In addition to the Minnesota and Indiana sites, the EPA and other regulators have investigated MGP sites that were owned or operated by CenterPoint Energy or CERC or may have been owned by one of their former affiliates. Total costs that may be incurred in connection with addressing these sites cannot be determined at this time. The estimated accrued costs are limited to CenterPoint Energy’s and CERC’s share of the remediation efforts and are therefore net of exposures of other PRPs. The estimated range of possible remediation costs for the sites for which CenterPoint Energy and CERC believe they may have responsibility was based on remediation continuing for the minimum time frame given in the table below. September 30, 2020 CenterPoint Energy CERC (in millions, except years) Amount accrued for remediation $ 12 $ 7 Minimum estimated remediation costs 7 4 Maximum estimated remediation costs 54 32 Minimum years of remediation 5 30 Maximum years of remediation 50 50 The cost estimates are based on studies of a site or industry average costs for remediation of sites of similar size. The actual remediation costs will depend on the number of sites to be remediated, the participation of other PRPs, if any, and the remediation methods used. CenterPoint Energy and CERC do not expect the ultimate outcome of these matters to have a material adverse effect on the financial condition, results of operations or cash flows of either CenterPoint Energy or CERC. Asbestos. Some facilities owned by the Registrants or their predecessors contain or have contained asbestos insulation and other asbestos-containing materials. The Registrants are from time to time named, along with numerous others, as defendants in lawsuits filed by a number of individuals who claim injury due to exposure to asbestos, and the Registrants anticipate that additional claims may be asserted in the future. Although their ultimate outcome cannot be predicted at this time, the Registrants do not expect these matters, either individually or in the aggregate, to have a material adverse effect on their financial condition, results of operations or cash flows. CCR Rule (CenterPoint Energy). In April 2015, the EPA finalized its CCR Rule, which regulates ash as non-hazardous material under the RCRA. The final rule allows beneficial reuse of ash, and the majority of the ash generated by Indiana Electric’s generating plants will continue to be reused. In July 2018, the EPA released its final CCR Rule Phase I Reconsideration which extended the deadline to October 31, 2020 for ceasing placement of ash in ponds that exceed groundwater protections standards or that fail to meet location restrictions. While the EPA Phase I Reconsideration moves forward, the existing CCR compliance obligations remain in effect. In August 2019, the EPA proposed additional “Part A” amendments to its CCR Rule with respect to beneficial reuse of ash and other materials. Further “Part B” amendments, which related to alternate liners for CCR surface impoundments and the surface impoundment closure process, were published in March 2020. The Part A amendments were finalized in August 2020. The EPA released a pre-publication version of the Part B amendments on October 16, 2020. The Part A amendments do not restrict Indiana Electric’s current beneficial reuse of its fly ash. CenterPoint Energy continues to evaluate the Part B amendments to determine potential impacts. Indiana Electric has three ash ponds, two at the F.B. Culley facility (Culley East and Culley West) and one at the A.B. Brown facility. Under the existing CCR Rule, Indiana Electric is required to perform integrity assessments, including ground water monitoring, at its F.B. Culley and A.B. Brown generating stations. The ground water studies are necessary to determine the remaining service life of the ponds and whether a pond must be retrofitted with liners or closed in place, with bottom ash handling conversions completed. Indiana Electric’s Warrick generating unit is not included in the scope of the CCR Rule as this unit has historically been part of a larger generating station that predominantly serves an adjacent industrial facility. In March 2018, Indiana Electric began posting ground water data monitoring reports annually to its public website in accordance with the requirements of the CCR Rule. This data preliminarily indicates potential groundwater impacts very close to Indiana Electric’s ash impoundments, and further analysis is ongoing. The CCR Rule required companies to complete location restriction determinations by October 18, 2018. Indiana Electric completed its evaluation and determined that one F.B. Culley pond (Culley East) and the A.B. Brown pond fail the aquifer placement location restriction. As a result of this failure, Indiana Electric is required to cease disposal of new ash in the ponds and commence closure of the ponds by April 11, 2021. CenterPoint Energy plans to seek extensions available under the CCR Rule that would allow Indiana Electric to continue to use the ponds through October 15, 2023. The inability to take these extensions may result in increased and potentially significant operational costs in connection with the accelerated implementation of an alternative ash disposal system or adversely impact Indiana Electric’s future operations. Failure to comply with these requirements could also result in an enforcement proceeding including the imposition of fines and penalties. On April 24, 2019, Indiana Electric received an order from the IURC approving recovery in rates of costs associated with the closure of the Culley West pond, which has already commenced closure activities. CenterPoint Energy believes the language in the IURC order is favorable for future recovery of closure costs for Indiana Electric’s remaining ponds. Indiana Electric continues to refine site specific estimates of closure costs. In July 2018, Indiana Electric filed a Complaint for Damages and Declaratory Relief against its insurers seeking reimbursement of defense, investigation and pond closure costs incurred to comply with the CCR Rule, and has since reached confidential settlement agreements with its insurers. The proceeds of these settlements will offset costs that have been and will be incurred to close the ponds. In March 2019, Indiana Electric entered into agreements with third parties for the excavation and beneficial reuse of the ash at the A.B. Brown ash pond. On December 2, 2019, the EPA published proposed revisions to the CCR Rule. The revisions were finalized on August 28, 2020. On August 14, 2019, Indiana Electric filed its petition with the IURC for recovery of costs associated with the closure of the A.B. Brown ash pond, which would include costs associated with the excavation and recycling of ponded ash. This petition was subsequently approved by the IURC on May 13, 2020. On October 28, 2020, the IURC approved Indiana Electric’s ECA proceeding, which included the initiation of recovery of the federally mandated project costs. As of September 30, 2020, CenterPoint Energy has recorded an approximate $73 million ARO, which represents the discounted value of future cash flow estimates to close the ponds at A.B. Brown and F.B. Culley. This estimate is subject to change due to the contractual arrangements; continued assessments of the ash, closure methods, and the timing of closure; implications of Indiana Electric’s generation transition plan; changing environmental regulations; and proceeds received from the settlements in the aforementioned insurance proceeding. In addition to these removal costs, Indiana Electric also anticipates equipment purchases of between $60 million and $80 million to complete the A.B. Brown closure project. Other Environmental. From time to time, the Registrants identify the presence of environmental contaminants during operations or on property where their predecessors have conducted operations. Other such sites involving contaminants may be identified in the future. The Registrants have and expect to continue to remediate any identified sites consistent with state and federal legal obligations. From time to time, the Registrants have received notices, and may receive notices in the future, from regulatory authorities or others regarding status as a PRP in connection with sites found to require remediation due to the presence of environmental contaminants. In addition, the Registrants have been, or may be, named from time to time as defendants in litigation related to such sites. Although the ultimate outcome of such matters cannot be predicted at this time, the Registrants do not expect these matters, either individually or in the aggregate, to have a material adverse effect on their financial condition, results of operations or cash flows. Other Proceedings The Registrants are involved in other legal, environmental, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies regarding matters arising in the ordinary course of business. From time to time, the Registrants are also defendants in legal proceedings with respect to claims brought by various plaintiffs against broad groups of participants in the energy industry. Some of these proceedings involve substantial amounts. The Registrants regularly analyze current information and, as necessary, provide accruals for probable and reasonably estimable liabilities on the eventual disposition of these matters. The Registrants do not expect the disposition of these matters to have a material adverse effect on the Registrants’ financial condition, results of operations or cash flows. |
Earnings Per Share (CenterPoint
Earnings Per Share (CenterPoint Energy) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share (CenterPoint Energy) [Text Block] | Earnings Per Share (CenterPoint Energy) The Series C Preferred Stock issued in May 2020 are considered participating securities since these shares participate in dividends on Common Stock on a pari passu, pro rata, as-converted basis. See Note 19 for further information on the issuance of Series C Preferred Stock. As a result, beginning June 30, 2020, earnings per share on Common Stock is computed using the two-class method required for participating securities. The two-class method uses an earnings allocation formula that treats participating securities as having rights to earnings that otherwise would have been available only to common shareholders. Under the two-class method, income (loss) available to common shareholders from continuing operations is derived by subtracting the following from income (loss) from continuing operations: • preferred share dividend requirement; • deemed dividends for the amortization of the beneficial conversion feature recognized at issuance of the Series C Preferred Stock; and • an allocation of undistributed earnings to preferred shareholders of participating securities (Series C Preferred Stock) based on the securities’ right to receive dividends. Undistributed earnings are calculated by subtracting dividends declared on Common Stock, the preferred share dividend requirement and deemed dividends for the amortization of the beneficial conversion feature from net income. Net losses are not allocated to the Series C Preferred Stock as it does not have a contractual obligation to share in the losses of CenterPoint Energy. The Series C Preferred Stock includes conversion features at a price that is below the fair value of the Common Stock on the commitment date. This beneficial conversion feature, which was approximately $32 million, represents the difference between the fair value per share of the Common Stock as of the commitment date and the conversion price, multiplied by the number of common shares issuable upon conversion. The beneficial conversion feature is recognized as a discount to Series C Preferred Stock and will be amortized as a deemed dividend over the period from the issue date to the first allowable conversion date, which is November 6, 2020. The amount amortized during the three and nine months ended September 30, 2020 was approximately $16 million and $25 million, respectively. Basic earnings per common share is computed by dividing income available to common shareholders from continuing operations by the basic weighted average number of common shares outstanding during the period. Participating securities are excluded from basic weighted average number of common shares outstanding. Diluted earnings per common share is computed by dividing income available to common shareholders from continuing operations by the weighted average number of common shares outstanding, including all potentially dilutive common shares, if the effect of such common shares is dilutive. Diluted earnings per share reflects the dilutive effect of potential common shares from share-based awards and convertible preferred shares. The dilutive effect of the restricted stock, Series B Preferred Stock and Series C Preferred Stock is computed using the if-converted method, which assumes conversion of the restricted stock, Series B Preferred Stock and Series C Preferred Stock at the beginning of the period, giving income recognition for the add-back of the preferred share dividends, amortization of beneficial conversion feature, and undistributed earnings allocated to preferred shareholders. The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per common share. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions, except per share and share amounts) Numerator: Income (loss) from continuing operations $ 127 $ 251 $ (791) $ 545 Less: Preferred stock dividend requirement (Note 19) 36 29 102 88 Less: Amortization of beneficial conversion feature (Note 19) 16 — 25 — Less: Undistributed earnings allocated to preferred shareholders (1) — — — — Income (loss) available to common shareholders from continuing operations - basic and diluted 75 222 (918) 457 Income (loss) available to common shareholders from discontinued operations - basic and diluted (6) 19 (182) 89 Income (loss) available to common shareholders - basic and diluted $ 69 $ 241 $ (1,100) $ 546 Denominator: Weighted average common shares outstanding - basic 544,811,000 502,228,000 525,160,000 501,986,000 Plus: Incremental shares from assumed conversions: Restricted stock (4) 3,377,000 2,852,000 — 2,852,000 Series B Preferred Stock (2) — — — — Series C Preferred Stock (3) — — — — Weighted average common shares outstanding - diluted 548,188,000 505,080,000 525,160,000 504,838,000 Earnings (loss) per common share: Basic earnings (loss) per common share - continuing operations $ 0.14 $ 0.44 $ (1.75) $ 0.91 Basic earnings (loss) per common share - discontinued operations (0.01) 0.04 (0.35) 0.18 Basic Earnings (Loss) Per Common Share $ 0.13 $ 0.48 $ (2.10) $ 1.09 Diluted earnings (loss) per common share - continuing operations $ 0.14 $ 0.44 $ (1.75) $ 0.91 Diluted earnings (loss) per common share - discontinued operations (0.01) 0.03 (0.35) 0.17 Diluted Earnings (Loss) Per Common Share $ 0.13 $ 0.47 $ (2.10) $ 1.08 (1) There were no undistributed earnings to be allocated to participating securities for the three and nine months ended September 30, 2020. (2) The computation of diluted earnings per common share outstanding for the three and nine months ended September 30, 2020 excludes 35,940,000 and 35,923,000 potentially dilutive shares from the denominator, respectively, because the shares would be anti-dilutive. The computation of diluted earnings per common share outstanding for the three and nine months ended September 30, 2019 excludes 33,537,000 and 33,537,000 potentially dilutive shares from the denominator, respectively, because the shares would be anti-dilutive. (3) The computation of diluted earnings per common share outstanding for the three and nine months ended September 30, 2020 excludes 47,355,000 and 25,578,000 potentially dilutive shares, respectively, of Series C Preferred Stock from the denominator because the shares would be anti-dilutive. (4) 3,377,000 incremental common shares from assumed conversions of restricted stock have not been included in the computation of diluted earnings (loss) per share for the nine months ended September 30, 2020, respectively, as their inclusion would be anti-dilutive. |
Reportable Segments
Reportable Segments | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Reportable Business Segments [Text Block] | Reportable Segments The Registrants’ determination of reportable segments considers the strategic operating units under which the Registrants’ CODM manages sales, allocates resources and assesses performance of various products and services to wholesale or retail customers in differing regulatory environments. As of January 1, 2020, each Registrant’s CODM views net income as the measure of profit or loss for the reportable segments rather than the previous measure of operating income. Certain prior year amounts have been reclassified to conform to the current year presentation. As of September 30, 2020, reportable segments by Registrant were as follows: Registrant Houston Electric T&D Indiana Electric Integrated Natural Gas Distribution Midstream Investments CenterPoint Energy X X X X Houston Electric X CERC X • CenterPoint Energy’s and Houston Electric’s Houston Electric T&D reportable segment consists of electric transmission and distribution services in the Texas Gulf Coast area. • CenterPoint Energy’s Indiana Electric Integrated reportable segment consists of electric transmission and distribution services primarily to southwestern Indiana and includes power generation and wholesale power operations. • CenterPoint Energy’s Natural Gas Distribution reportable segment consists of (i) intrastate natural gas sales to, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas; (ii) permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP, formerly included in the Energy Services reportable segment; and (iii) temporary delivery of LNG and CNG throughout the contiguous 48 states through MES, formerly included in the Energy Services reportable segment. • CERC’s Natural Gas Distribution reportable segment consists of (i) intrastate natural gas sales to, and natural gas transportation and distribution for residential, commercial, industrial and institutional customers in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas; (ii) permanent pipeline connections through interconnects with various interstate and intrastate pipeline companies through CEIP, formerly included in the Energy Services reportable segment; and (iii) temporary delivery of LNG and CNG throughout the contiguous 48 states through MES, formerly included in the Energy Services reportable segment. • CenterPoint Energy’s Midstream Investments reportable segment consists of the equity investment in Enable (excluding the Enable Series A Preferred Units). CenterPoint Energy’s Corporate and Other consists of energy performance contracting and sustainable infrastructure services through ESG and other corporate operations which support all of the business operations of CenterPoint Energy. CERC’s Corporate and Other consists primarily of corporate operations which support all of the business operations of CERC. Discontinued Operations (CenterPoint Energy and CERC) On February 3, 2020, CenterPoint Energy, through its subsidiary VUSI, entered into the Securities Purchase Agreement to sell the Infrastructure Services Disposal Group, which consists of underground pipeline construction and repair services. Accordingly, the previously reported Infrastructure Services reportable segment has been eliminated. The transaction closed on April 9, 2020. See Note 3 for further information. Additionally, on February 24, 2020, CenterPoint Energy, through its subsidiary CERC Corp., entered into the Equity Purchase Agreement to sell the Energy Services Disposal Group, which consists of non-rate regulated natural gas sales and service operations. Accordingly, the previously reported Energy Services reportable segment has been eliminated. The transaction closed on June 1, 2020. See Note 3 for further information. Financial data for reportable segments is as follows, including Corporate and Other, Eliminations and Discontinued Operations for reconciliation purposes: CenterPoint Energy Three Months Ended September 30, 2020 2019 Revenues from Equity in Earnings of Unconsolidated Affiliates Net Income (Loss) Revenues from Equity in Earnings of Unconsolidated Affiliates Net Income (Loss) (in millions) Houston Electric T&D $ 828 (1) $ — $ 157 $ 859 (1) $ — $ 185 Indiana Electric Integrated 157 — 31 165 — 34 Natural Gas Distribution 560 — 5 541 — 6 Midstream Investments (2) — (67) (62) — 77 50 Corporate and Other 77 — (4) 93 — (24) Continuing Operations $ 1,622 $ (67) 127 $ 1,658 $ 77 251 Discontinued Operations, net (6) 19 Consolidated $ 121 $ 270 Nine Months Ended September 30, 2020 2019 Revenues from Equity in Earnings of Unconsolidated Affiliates Net Income (Loss) Revenues from Equity in Earnings of Unconsolidated Affiliates Net Income (Loss) (in millions) Houston Electric T&D $ 2,186 (1) $ — $ 281 $ 2,313 (1) $ — $ 315 Indiana Electric Integrated 414 — (121) 388 — 41 Natural Gas Distribution 2,519 — 242 2,629 — 149 Midstream Investments (2) — (1,499) (1,165) — 213 124 Corporate and Other 245 — (28) 215 — (84) Continuing Operations $ 5,364 $ (1,499) (791) $ 5,545 $ 213 545 Discontinued Operations, net (182) 89 Consolidated $ (973) $ 634 (1) Houston Electric T&D’s revenues from major external customers are as follows (CenterPoint Energy and Houston Electric): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Affiliates of NRG $ 243 $ 231 $ 573 $ 547 Affiliates of Vistra Energy Corp. 128 83 301 196 (2) Includes the impairment of CenterPoint Energy’s equity method investment in Enable of $1,541 million recorded during the nine months ended September 30, 2020 and CenterPoint Energy’s interest in Enable’s $225 million impairment on an equity method investment during the three and nine months ended September 30, 2020. Houston Electric consists of a single reportable segment; therefore, a tabular reportable segment presentation has not been included herein. CERC Three Months Ended September 30, 2020 2019 Revenues from Net Income (Loss) Revenues from Net Income (Loss) (in millions) Natural Gas Distribution $ 422 $ 1 $ 415 $ 5 Corporate and Other 4 (7) 5 (15) Continuing Operations $ 426 (6) $ 420 (10) Discontinued Operations, net 2 3 Consolidated $ (4) $ (7) Nine Months Ended September 30, 2020 2019 Revenues from Net Income (Loss) Revenues from Net Income (Loss) (in millions) Natural Gas Distribution $ 1,910 $ 155 $ 2,152 $ 134 Corporate and Other 10 (13) 6 (32) Continuing Operations $ 1,920 142 $ 2,158 102 Discontinued Operations, net (66) 57 Consolidated $ 76 $ 159 CenterPoint Energy and CERC Total Assets September 30, 2020 December 31, 2019 CenterPoint CERC CenterPoint CERC (in millions) Houston Electric T&D $ 11,296 $ — $ 11,264 $ — Indiana Electric Integrated 3,142 — 3,168 — Natural Gas Distribution 14,297 7,809 14,105 7,698 Midstream Investments 805 — 2,473 — Corporate and Other, net of eliminations 3,165 (30) 2,555 (90) Continuing Operations 32,705 7,779 33,565 7,608 Assets Held for Sale — — 1,964 904 Consolidated $ 32,705 $ 7,779 $ 35,529 $ 8,512 |
Related Party Transactions (Hou
Related Party Transactions (Houston Electric and CERC) | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions (Houston Electric and CERC) [Text Block] | Related Party Transactions (Houston Electric and CERC) Houston Electric and CERC participate in CenterPoint Energy’s money pool through which they can borrow or invest on a short-term basis. Funding needs are aggregated and external borrowing or investing is based on the net cash position. The net funding requirements of the CenterPoint Energy money pool are expected to be met with borrowings under CenterPoint Energy’s revolving credit facility or the sale of CenterPoint Energy’s commercial paper. The table below summarizes CenterPoint Energy money pool activity: September 30, 2020 December 31, 2019 Houston Electric CERC Houston Electric CERC (in millions, except interest rates) Money pool investments (borrowings) (1) $ 25 $ — $ 481 $ — Weighted average interest rate 0.19 % 0.19 % 1.98 % 1.98 % (1) Included in Accounts and notes receivable (payable)–affiliated companies on Houston Electric’s and CERC’s respective Condensed Consolidated Balance Sheets. Houston Electric and CERC affiliate related net interest income (expense) were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Houston Electric CERC Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Interest income (expense) (1) $ — $ — $ 5 $ 1 $ — $ — $ 14 $ 3 (1) Interest income is included in Other income (expense), net and interest expense is included in Interest and other finance charges on Houston Electric’s and CERC’s respective Condensed Statements of Consolidated Income. CenterPoint Energy provides some corporate services to Houston Electric and CERC. The costs of services have been charged directly to Houston Electric and CERC using methods that management believes are reasonable. These methods include usage rates, dedicated asset assignment and proportionate corporate formulas based on operating expenses, assets, gross margin, employees and a composite of assets, gross margin and employees. Houston Electric provides certain services to CERC. These services are billed at actual cost, either directly or as an allocation and include fleet services, shop services, geographic services, surveying and right-of-way services, radio communications, data circuit management and field operations. Additionally, CERC provides certain services to Houston Electric. These services are billed at actual cost, either directly or as an allocation and include line locating and other miscellaneous services. These charges are not necessarily indicative of what would have been incurred had Houston Electric and CERC not been affiliates. Amounts charged for these services were as follows and are included primarily in operation and maintenance expenses: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Houston Electric CERC Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Corporate service charges $ 48 $ 52 $ 38 $ 31 $ 142 $ 156 $ 132 $ 106 Net affiliate service charges (billings) (4) 4 (3) 3 (14) 14 (7) 7 The table below presents transactions among Houston Electric, CERC and their parent, CenterPoint Energy. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Houston Electric CERC Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Cash dividends paid to parent $ 52 $ 8 $ 60 $ 16 $ 457 $ 80 $ 100 $ 119 Cash contribution from parent — — — — — — 590 — Capital distribution to parent associated with the sale of CES — — — — — 286 — — Property, plant and equipment from parent (1) 35 23 — — 35 23 — — (1) Property, plant and equipment purchased from CenterPoint Energy at its net carrying value on the date of purchase. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Equity [Text Block] | Equity Dividends Declared and Paid (CenterPoint Energy) CenterPoint Energy paid dividends on its Common Stock during the nine months ended September 30, 2020 and 2019 as presented in the table below: Declaration Date Record Date Payment Date Per Share (1) Total February 3, 2020 February 20, 2020 March 12, 2020 $ 0.2900 $ 145 April 24, 2020 May 21, 2020 June 11, 2020 0.1500 82 July 29, 2020 August 20, 2020 September 10, 2020 0.1500 82 Total 2020 $ 0.5900 $ 309 December 12, 2018 February 21, 2019 March 14, 2019 $ 0.2875 $ 144 April 25, 2019 May 16, 2019 June 13, 2019 0.2875 144 July 31, 2019 August 15, 2019 September 12, 2019 0.2875 145 Total 2019 $ 0.8625 $ 433 (1) On April 1, 2020, in response to the reduction in cash flow related to the reduction in Enable quarterly common unit distributions announced by Enable on April 1, 2020, CenterPoint Energy announced a reduction of its quarterly Common Stock dividend per share from $0.2900 to $0.1500. CenterPoint Energy paid dividends on its Series A Preferred Stock during the nine months ended September 30, 2020 and 2019 as presented in the table below: Declaration Date Record Date Payment Date Per Share Total February 3, 2020 February 14, 2020 March 2, 2020 $ 30.6250 $ 25 July 29, 2020 August 14, 2020 September 1, 2020 30.6250 24 Total 2020 $ 61.2500 $ 49 December 12, 2018 February 15, 2019 March 1, 2019 $ 32.1563 $ 26 July 31, 2019 August 15, 2019 September 3, 2019 30.6250 24 Total 2019 $ 62.7813 $ 50 CenterPoint Energy paid dividends on its Series B Preferred Stock during the nine months ended September 30, 2020 and 2019 as presented in the table below: Declaration Date Record Date Payment Date Per Share Total February 3, 2020 February 14, 2020 March 2, 2020 $ 17.5000 $ 17 April 24, 2020 May 15, 2020 June 1, 2020 17.5000 17 July 29, 2020 August 14, 2020 September 1, 2020 17.5000 17 Total 2020 $ 52.5000 $ 51 December 12, 2018 February 15, 2019 March 1, 2019 $ 17.5000 $ 17 April 25, 2019 May 15, 2019 June 3, 2019 17.5000 17 July 31, 2019 August 15, 2019 September 3, 2019 17.5000 17 Total 2019 $ 52.5000 $ 51 CenterPoint Energy paid dividends on its Series C Preferred Stock during the nine months ended September 30, 2020 as presented in the table below: Declaration Date Record Date Payment Date Per Share Total April 24, 2020 (1) May 21, 2020 June 11, 2020 $ 0.1500 $ 7 July 29, 2020 August 20, 2020 September 10, 2020 0.1500 7 Total 2020 $ 0.3000 $ 14 (1) Declaration date for dividends on Common Stock. The Series C Preferred Stock is entitled to participate in any dividend or distribution (excluding those payable in Common Stock) with the Common Stock on a pari passu, pro rata, as-converted basis. The per share amount reflects the dividend per share of Common Stock as if the Series C Preferred Stock were converted into Common Stock. Income Allocated to Preferred Shareholders (CenterPoint Energy) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Series A Preferred Stock $ 12 $ 12 $ 37 $ 37 Series B Preferred Stock 17 17 51 51 Series C Preferred Stock 7 — 14 — Preferred dividend requirement 36 29 102 88 Amortization of beneficial conversion feature 16 — 25 — Total income allocated to preferred shareholders $ 52 $ 29 $ 127 $ 88 Accumulated Other Comprehensive Income (Loss) Changes in accumulated comprehensive income (loss) are as follows: Three Months Ended September 30, 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Beginning Balance $ (84) $ — $ 10 $ (105) $ (15) $ 5 Other comprehensive loss before reclassifications: Deferred loss from interest rate derivatives (1) — — — (2) — — Other comprehensive income (loss) from unconsolidated affiliates 1 — — (2) — — Amounts reclassified from accumulated other comprehensive loss: Actuarial losses (2) 2 — — 2 — — Tax expense (1) — — — — — Net current period other comprehensive income (loss) 2 — — (2) — — Ending Balance $ (82) $ — $ 10 $ (107) $ (15) $ 5 Nine Months Ended September 30, 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Beginning Balance $ (98) $ (15) $ 10 $ (108) $ (14) $ 5 Other comprehensive loss before reclassifications: Deferred loss from interest rate derivatives (1) — — — (3) (1) — Other comprehensive loss from unconsolidated affiliates (2) — — (2) — — Amounts reclassified from accumulated other comprehensive loss: Prior service cost (2) 1 — — 1 — — Actuarial losses (2) 5 — — 6 — — Reclassification of deferred loss from cash flow hedges realized in net income — — — 1 — — Reclassification of deferred loss from cash flow hedges (3) 19 19 — — — — Tax expense (7) (4) — (2) — — Net current period other comprehensive income (loss) 16 15 — 1 (1) — Ending Balance $ (82) $ — $ 10 $ (107) $ (15) $ 5 (1) Gains and losses are reclassified from Accumulated other comprehensive income into income when the hedged transactions affect earnings. The reclassification amounts are included in Interest and other finance charges in each of the Registrants’ respective Statements of Consolidated Income. Over the next twelve months estimated amortization from Accumulated Comprehensive Income into income is expected to be immaterial. (2) Amounts are included in the computation of net periodic cost and are reflected in Other income (expense), net in each of the Registrants’ respective Statements of Consolidated Income. (3) The cost of debt approved by the PUCT as part of Houston Electric’s Stipulation and Settlement Agreement included unrealized gains and losses on interest rate hedges. Accordingly, deferred gains and losses on interest rate hedges were reclassified to regulatory assets or liabilities, as appropriate. Series C Preferred Stock Private Placement (CenterPoint Energy) On May 6, 2020, CenterPoint Energy entered into agreements for the private placement of 725,000 shares of its Series C Preferred Stock, at a price of $1,000 share, resulting in net proceeds of $724 million after issuance costs. The Series C Preferred Stock is entitled to participate in any dividend or distribution (excluding those payable in Common Stock) with the Common Stock on a pari passu, pro rata, as-converted basis. At liquidation, the Series C Preferred Stock will rank pari passu to the existing Series A Preferred Stock and Series B Preferred Stock and senior to the Common Stock, but will participate in a liquidation only on an as-converted to Common Stock basis. Conversion of the Series C Preferred Stock is mandatory upon the occurrence of any of the following triggers: (i) the 12-month anniversary date of the preferred stock purchase agreements, (ii) a bankruptcy event, and (iii) a fundamental change in CenterPoint Energy, including, among other things certain change of control events. Upon a mandatory conversion, each share of Series C Preferred Stock will convert into the number of Common Stock equal to the quotient of $1,000 divided by the prevailing conversion price, which is initially $15.31. In a conversion at the 12-month anniversary date, in lieu of issuing Common Stock, CenterPoint Energy may, at its election, make a cash payment equal to the product of (i) the then current market price of the Common Stock multiplied by (ii) the number of shares of Common Stock that such holder would have been entitled to receive in a conversion. Following the six-month anniversary date of the issuance of the Series C Preferred Stock, holders of Series C Preferred Stock also have an optional right to convert their holdings to Common Stock at any time, subject to a limit on conversion of no more than 4.9% of the outstanding Common Stock. The conversion price is subject to adjustment for subdivisions and combinations, dividends or distributions payable in common stock. If all of the 725,000 shares of Series C Preferred Stock converted at the initial conversion price, CenterPoint Energy would issue an incremental 47,354,670 shares of Common Stock. CenterPoint Energy may not issue more than a specified amount of outstanding Common Stock upon conversion of Preferred Stock. Once such specified amount has been reached, each Series C Preferred Stock holder electing to convert or subject to mandatory conversion will receive a cash payment equal to the product of (i) the market price of the Common Stock multiplied by (ii) the number of shares of Common Stock that such holder would have been entitled to receive in a conversion. On June 1, 2020, CenterPoint Energy filed a shelf registration statement with the SEC registering 58,051,121 shares of Common Stock, equal to the maximum number of shares of Common Stock issuable in the aggregate upon conversion of the Series C Preferred Stock pursuant to the preferred stock purchase agreements. Series C Preferred Stock holders have no voting rights, except that the affirmative vote of a majority of outstanding Series C Preferred Stock is required for the company to (i) create any class or series of securities that is senior to the Series C Preferred Stock; (ii) reclassify or amend any authorized securities of CenterPoint Energy if reclassification would render the relevant security senior to the Series C Preferred Stock; or (iii) increase the authorized amount or issue any additional shares of Series C Preferred Stock. The vote of at least 66 2/3% of the outstanding shares of Series C Preferred Stock is needed to amend the terms of the Series C Preferred Stock in any manner that would adversely alter or change the rights of the Series C Preferred Stock, subject to certain exceptions. Common Stock Private Placement (CenterPoint Energy) On May 6, 2020, CenterPoint Energy entered into agreements for the private placement of 41,977,612 shares of its Common Stock, at a price of $16.08 share, resulting in net proceeds of $673 million after issuance costs. On June 1, 2020, CenterPoint Energy filed a shelf registration statement with the SEC registering these 41,977,612 shares of Common Stock. |
Subsequent Events (CenterPoint
Subsequent Events (CenterPoint Energy) | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events (CenterPoint Energy) [Text Block] | Subsequent Events (CenterPoint Energy) CenterPoint Energy Dividend Declarations Equity Instrument Declaration Date Record Date Payment Date Per Share Common Stock October 29, 2020 November 19, 2020 December 10, 2020 $ 0.1500 Series B Preferred Stock October 29, 2020 November 13, 2020 December 1, 2020 17.5000 Series C Preferred Stock (1) October 29, 2020 November 19, 2020 December 10, 2020 0.1500 (1) The Series C Preferred Stock is entitled to participate in any dividend or distribution (excluding those payable in Common Stock) with the Common Stock on a pari passu, pro rata, as-converted basis. The per share amount reflects the dividend per share of Common Stock as if the Series C Preferred Stock were converted into Common Stock. Enable Distributions Declarations (CenterPoint Energy) Equity Instrument Declaration Date Record Date Payment Date Per Unit Distribution Expected Cash Distribution Enable common units November 3, 2020 November 17, 2020 November 24, 2020 $ 0.16525 $ 39 Enable Series A Preferred Units November 3, 2020 November 3, 2020 November 13, 2020 0.62500 9 |
New Accounting Pronouncements (
New Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following table provides an overview of certain recently adopted or issued accounting pronouncements applicable to all the Registrants, unless otherwise noted. Recently Adopted Accounting Standards ASU Number and Name Description Date of Adoption Financial Statement Impact ASU 2016-13- Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This standard, including standards amending this standard, requires a new model called CECL to estimate credit losses for (1) financial assets subject to credit losses and measured at amortized cost and (2) certain off-balance sheet credit exposures. Upon initial recognition of the exposure, the CECL model requires an entity to estimate the credit losses expected over the life of an exposure based on historical information, current information and reasonable and supportable forecasts, including estimates of prepayments. Transition method: modified retrospective January 1, 2020 The Registrants adopted the standard and recognized a cumulative-effect adjustment of the transition to opening retained earnings and allowance for doubtful accounts with no impact on results of operations and cash flows. See Note 4 for more information. ASU 2018-13- Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement This standard eliminates, modifies and adds certain disclosure requirements for fair value measurements. Transition method: prospective for additions and one modification and retrospective for all other amendments Adoption of eliminations and modifications as of September 30, 2018 and additions as of January 1, 2020 The adoption of this standard did not impact the Registrants’ financial position, results of operations or cash flows. The disclosures modified and added upon adoption are no longer included in Note 8 due to the sale of the Energy Services Disposal Group. ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This standard simplifies accounting for income taxes by eliminating certain exceptions to the guidance for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also simplifies aspects of the accounting for franchise taxes that are partially based on income and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Transition method: prospective for all amendments that apply to the Registrants January 1, 2020 Upon adoption, the Registrants are not required to apply the intraperiod tax allocation exception when there is a current-period loss from continuing operations. Accordingly, CenterPoint Energy determined the tax effect of income from continuing operations without considering the tax effects of items that are not included in continuing operations (i.e., discontinued operations). Additionally, CenterPoint Energy is no longer required to limit the year-to-date tax benefit recognized when the year-to-date benefit exceeds the anticipated full year benefit. Issued, Not Yet Effective Accounting Standards ASU Number and Name Description Effective Date Financial Statement Impact ASU 2020-06: Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity This standard eliminates the cash conversion and beneficial conversion feature models in ASC 470-20 that require separate accounting for embedded features as a component of equity. It simplifies the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification. The standard also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share (EPS) calculation and the average market price to calculate the diluted EPS denominator. Additional disclosures will also be required upon adoption. Transition method : modified retrospective January 1, 2022 CenterPoint Energy is currently assessing the impact that the adoption of this standard may have on its financial position, results of operations, cash flows and disclosures related to its Series B Preferred Stock and Series C Preferred Stock. |
Divestitures (CenterPoint Ene_2
Divestitures (CenterPoint Energy and CERC) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations Balance Sheet [Table Text Block] | The assets and liabilities of the Infrastructure Services and Energy Services Disposal Groups classified as held for sale in CenterPoint Energy’s and CERC’s Condensed Consolidated Balance Sheets, as applicable, as of December 31, 2019 included the following: December 31, 2019 CenterPoint Energy CERC Infrastructure Services Disposal Group Energy Services Disposal Group Total Energy Services Disposal Group (in millions) Receivables, net $ 192 $ 445 $ 637 $ 445 Accrued unbilled revenues 109 8 117 8 Natural gas inventory — 67 67 67 Materials and supplies 6 — 6 — Non-trading derivative assets — 136 136 136 Other 4 35 39 35 Total current assets held for sale 311 691 1,002 691 Property, plant and equipment, net 295 26 321 26 Goodwill 220 62 282 62 Non-trading derivative assets — 58 58 58 Other 234 67 301 67 Total non-current assets held for sale 749 213 962 213 Total assets held for sale $ 1,060 $ 904 $ 1,964 $ 904 Accounts payable $ 45 $ 299 $ 344 $ 299 Taxes accrued 2 — 2 — Non-trading derivative liabilities — 44 44 44 Other 40 25 65 25 Total current liabilities held for sale 87 368 455 368 Non-trading derivative liabilities — 14 14 14 Benefit obligations — 4 4 4 Other 16 9 25 9 Total non-current liabilities held for sale 16 27 43 27 Total liabilities held for sale $ 103 $ 395 $ 498 $ 395 |
Disposal Groups, Including Discontinued Operations [Table Text Block] | A summary of the Infrastructure Services and Energy Services Disposal Groups presented in CenterPoint Energy’s and CERC’s Condensed Statements of Consolidated Income, as applicable, is as follows: Three Months Ended September 30, 2020 2019 2020 2019 2020 2019 2020 2019 CenterPoint Energy CERC Infrastructure Services Disposal Group Energy Services Disposal Group Total Energy Services Disposal Group (in millions) Revenues $ — $ 377 $ — $ 740 $ — $ 1,117 $ — $ 740 Expenses: Non-utility cost of revenues — 96 — 715 — 811 — 715 Operation and maintenance — 235 — 17 — 252 — 17 Depreciation and amortization — 15 — 3 — 18 — 3 Taxes other than income taxes — 1 — — — 1 — — Total — 347 — 735 — 1,082 — 735 Income (loss) from Discontinued Operations before income taxes — 30 — 5 — 35 — 5 Gain (loss) on classification to held for sale, net (2) (9) — 3 — (6) — 3 — Income tax expense (benefit) (1) 15 1 1 — 16 1 2 Net income (loss) from Discontinued Operations $ (8) $ 15 $ 2 $ 4 $ (6) $ 19 $ 2 $ 3 Nine Months Ended September 30, 2020 2019 (1) 2020 2019 2020 2019 2020 2019 CenterPoint Energy CERC Infrastructure Services Disposal Group Energy Services Disposal Group Total Energy Services Disposal Group (in millions) Revenues $ 250 $ 849 $ 1,167 $ 2,834 $ 1,417 $ 3,683 $ 1,167 $ 2,834 Expenses: Non-utility cost of revenues 50 228 1,108 2,701 1,158 2,929 1,108 2,701 Operation and maintenance 184 526 34 51 218 577 34 51 Depreciation and amortization — 39 — 10 — 49 — 10 Taxes other than income taxes 1 1 3 — 4 1 3 — Total 235 794 1,145 2,762 1,380 3,556 1,145 2,762 Income (loss) from Discontinued Operations before income taxes 15 55 22 72 37 127 22 72 Gain (loss) on classification to held for sale, net (2) (102) — (96) — (198) — (90) — Income tax expense (benefit) 24 21 (3) 17 21 38 (2) 15 Net income (loss) from Discontinued Operations $ (111) $ 34 $ (71) $ 55 $ (182) $ 89 $ (66) $ 57 (1) Reflects February 1, 2019 to September 30, 2019 results only due to the Merger. (2) Loss from classification to held for sale is inclusive of goodwill impairment, gains and losses recognized upon sale, and for CenterPoint Energy, its costs to sell. Revenues and expenses incurred by CenterPoint Energy and CERC for natural gas transportation and supply until the closing of the sale of the Energy Services Disposal Group were as follows: Three Months Ended September 30, 2020 2019 2020 2019 CenterPoint Energy CERC (in millions) Transportation revenue $ — $ 33 $ — $ 33 Natural gas expense — 10 — 10 Nine Months Ended September 30, 2020 (1) 2019 2020 (1) 2019 CenterPoint Energy CERC (in millions) Transportation revenue $ 34 $ 81 $ 34 $ 81 Natural gas expense 48 90 47 89 (1) Represents charges for the period January 1, 2020 until the closing of the sale of the Energy Services Disposal Group. NGD has AMAs associated with its utility distribution service in Arkansas, Louisiana, Mississippi, Oklahoma and Texas. The AMAs are with the Energy Services Disposal Group and will expire in 2021. Pursuant to the provisions of the agreements, NGD sells natural gas and agrees to repurchase an equivalent amount of natural gas during the winter heating seasons at the same cost. These transactions are accounted for as inventory financing. CenterPoint Energy and CERC had outstanding obligations related to the AMAs of $31 million and $-0- as of September 30, 2020 and December 31, 2019, respectively. The Infrastructure Services Disposal Group provides pipeline construction and repair services to CenterPoint Energy’s and CERC’s NGD. In accordance with consolidation guidance in ASC 980—Regulated Operations, costs incurred by NGD utilities for these pipeline construction and repair services are not eliminated in consolidation when capitalized and included in rate base by the NGD utility. Amounts charged for these services that are not capitalized are included primarily in Operation and maintenance expenses. Fees incurred by CenterPoint Energy’s and CERC’s NGD for pipeline construction and repair services are as follows: Three Months Ended September 30, 2020 2019 2020 2019 CenterPoint Energy CERC (in millions) Pipeline construction and repair services capitalized $ — $ 45 $ — $ 3 Pipeline construction and repair service charges in operations and maintenance expense — 1 — 1 Nine Months Ended September 30, 2020 (1) 2019 (2) 2020 2019 CenterPoint Energy CERC (in millions) Pipeline construction and repair services capitalized $ 34 $ 112 $ — $ 12 Pipeline construction and repair service charges in operations and maintenance expense 1 5 1 2 (1) Represents charges for the period January 1, 2020 until the closing of the sale of the Infrastructure Services Disposal Group. (2) Represents charges for the period beginning February 1, 2019 due to the Merger. |
Disposal Groups, Including Discontinued Operations Cash Flow [Table Text Block] | CenterPoint Energy and CERC have elected not to separately disclose discontinued operations on their respective Condensed Statements of Consolidated Cash Flows. L ong-lived assets are not depreciated or amortized once they are classified as held for sale. The following table summarizes CenterPoint Energy’s and CERC’s cash flows from discontinued operations and certain supplemental cash flow disclosures related to the Infrastructure Services and Energy Services Disposal Groups, as applicable: Nine Months Ended September 30, 2020 2019 (1) 2020 2019 2020 2019 CenterPoint Energy CERC Infrastructure Services Disposal Group Energy Services Disposal Group Energy Services Disposal Group (in millions) Depreciation and amortization $ — $ 39 $ — $ 10 $ — $ 10 Amortization of intangible assets in Non-utility cost of revenues — 15 — — — — Write-down of natural gas inventory — — 3 5 3 5 Capital expenditures 16 53 1 12 1 12 Non-cash transactions: Accounts payable related to capital expenditures 2 1 4 1 4 1 (1) Reflects February 1, 2019 to September 30, 2019 results only due to the Merger. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following tables disaggregate revenues by reportable segment and major source: CenterPoint Energy Three Months Ended September 30, 2020 Houston Electric Indiana Natural Gas Distribution Corporate Total (in millions) Revenue from contracts $ 828 $ 157 $ 550 $ 75 $ 1,610 Other (1) — — 10 2 12 Total revenues $ 828 $ 157 $ 560 $ 77 $ 1,622 Nine Months Ended September 30, 2020 Houston Electric Indiana Natural Gas Distribution Corporate Total (in millions) Revenue from contracts $ 2,188 $ 414 $ 2,475 $ 240 $ 5,317 Other (1) (2) — 44 5 47 Total revenues $ 2,186 $ 414 $ 2,519 $ 245 $ 5,364 Three Months Ended September 30, 2019 Houston Electric Indiana Natural Gas Distribution Corporate Total (in millions) Revenue from contracts $ 861 $ 165 $ 527 $ 91 $ 1,644 Other (1) (2) — 14 2 14 Total revenues $ 859 $ 165 $ 541 $ 93 $ 1,658 Nine Months Ended September 30, 2019 Houston Electric Indiana Natural Gas Distribution (2) Corporate Total (in millions) Revenue from contracts $ 2,319 $ 388 $ 2,603 $ 210 $ 5,520 Other (1) (6) — 26 5 25 Total revenues $ 2,313 $ 388 $ 2,629 $ 215 $ 5,545 (1) Primarily consists of income from ARPs, weather hedge gains (losses) and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Total lease income was $2 million and $4 million for the three months ended September 30, 2020 and 2019, respectively, and $4 million and $5 million for the nine months ended September 30, 2020 and 2019, respectively. (2) Reflects revenues from Vectren subsidiaries for the period from February 1, 2019 to September 30, 2019. Houston Electric Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Revenue from contracts $ 828 $ 861 $ 2,188 $ 2,319 Other (1) — (2) (6) (9) Total revenues $ 828 $ 859 $ 2,182 $ 2,310 (1) Primarily consists of income from ARPs, weather hedge gains (losses) and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Lease income was not significant for the three and nine months ended September 30, 2020 and 2019. CERC Three Months Ended September 30, 2020 2019 Natural Gas Distribution Corporate Total Natural Gas Distribution Corporate Total (in millions) Revenue from contracts $ 414 $ 3 $ 417 $ 403 $ 5 $ 408 Other (1) 8 1 9 12 — 12 Total revenues $ 422 $ 4 $ 426 $ 415 $ 5 $ 420 Nine Months Ended September 30, 2020 2019 Natural Gas Distribution Corporate Total Natural Gas Distribution Corporate Total (in millions) Revenue from contracts $ 1,865 $ 8 $ 1,873 $ 2,123 $ 6 $ 2,129 Other (1) 45 2 47 29 — 29 Total revenues $ 1,910 $ 10 $ 1,920 $ 2,152 $ 6 $ 2,158 (1) Primarily consists of income from ARPs, weather hedge gains (losses) and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Lease income was not significant for the three and nine months ended September 30, 2020 and 2019. |
Contract with Customer, Asset and Liability [Table Text Block] | The opening and closing balances of accounts receivable, other accrued unbilled revenue, contract assets and contract liabilities from contracts with customers from continuing operations as of December 31, 2019 and September 30, 2020, respectively, are as follows: CenterPoint Energy Accounts Receivable Other Accrued Unbilled Revenues Contract Contract Liabilities (in millions) Opening balance as of December 31, 2019 $ 566 $ 469 $ 6 $ 30 Closing balance as of September 30, 2020 568 285 22 20 Increase (decrease) $ 2 $ (184) $ 16 $ (10) The amount of revenue recognized in the nine-month period ended September 30, 2020 that was included in the opening contract liability was $29 million. The difference between the opening and closing balances of the contract liabilities primarily results from the timing difference between CenterPoint Energy’s performance and the customer’s payment. Houston Electric Accounts Receivable Other Accrued Unbilled Revenues Contract Liabilities (in millions) Opening balance as of December 31, 2019 $ 210 $ 117 $ 3 Closing balance as of September 30, 2020 321 124 4 Increase $ 111 $ 7 $ 1 The amount of revenue recognized in the nine-month period ended September 30, 2020 that was included in the opening contract liability was $3 million. The difference between the opening and closing balances of the contract liabilities primarily results from the timing difference between Houston Electric’s performance and the customer’s payment. CERC Accounts Receivable Other Accrued Unbilled Revenues (in millions) Opening balance as of December 31, 2019 $ 222 $ 249 Closing balance as of September 30, 2020 123 91 Decrease $ (99) $ (158) CERC does not have any opening or closing contract asset or contract liability balances. |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Remaining Performance Obligations (CenterPoint Energy). The table below discloses (1) the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period for contracts and (2) when CenterPoint Energy expects to recognize this revenue. Such contracts include energy performance and sustainable infrastructure services contracts of ESG, which are included in Corporate and Other. Rolling 12 Months Thereafter Total (in millions) Revenue expected to be recognized on contracts in place as of September 30, 2020: Corporate and Other $ 209 $ 590 $ 799 $ 209 $ 590 $ 799 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The Registrants’ net periodic cost, before considering amounts subject to overhead allocations for capital expenditure projects or for amounts subject to deferral for regulatory purposes, includes the following components relating to pension and postretirement benefits: Pension Benefits (CenterPoint Energy) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Service cost (1) $ 10 $ 10 $ 32 $ 30 Interest cost (2) 18 25 56 73 Expected return on plan assets (2) (28) (27) (85) (79) Amortization of prior service cost (2) — 2 — 6 Amortization of net loss (2) 10 13 31 39 Settlement cost (2) (3) 1 1 2 2 Curtailment gain (2) (4) — — — (1) Net periodic cost $ 11 $ 24 $ 36 $ 70 (1) Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Condensed Statements of Consolidated Income, net of amounts capitalized and regulatory deferrals. (2) Amounts presented in the table above are included in Other income (expense), net in CenterPoint Energy’s Condensed Statements of Consolidated Income, net of regulatory deferrals. (3) A one-time, non-cash settlement cost is required when the total lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of the net periodic cost for that year. In each of the three and nine months ended September 30, 2020 and 2019, CenterPoint Energy recognized non-cash settlement costs due to lump sum settlement payments from Vectren pension plans. (4) A curtailment gain or loss is required when the expected future services of a significant number of employees are reduced or eliminated for the accrual of benefits. In the nine months ended September 30, 2019, CenterPoint Energy recognized a pension curtailment gain related to Vectren employees whose employment was terminated after the Merger closed. Postretirement Benefits Three Months Ended September 30, 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Service cost (1) $ 1 $ — $ 1 $ 2 $ — $ — Interest cost (2) 2 1 — 4 1 2 Expected return on plan assets (2) (1) (1) (1) (3) (1) — Amortization of prior service cost (credit) (2) (1) (1) 1 (1) (1) — Net periodic cost (income) $ 1 $ (1) $ 1 $ 2 $ (1) $ 2 Nine Months Ended September 30, 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Service cost (1) $ 2 $ — $ 1 $ 3 $ — $ 1 Interest cost (2) 8 4 2 12 5 4 Expected return on plan assets (2) (4) (3) (1) (6) (3) (1) Amortization of prior service cost (credit) (2) (3) (4) 1 (3) (4) — Net periodic cost (income) $ 3 $ (3) $ 3 $ 6 $ (2) $ 4 (1) Amounts presented in the tables above are included in Operation and maintenance expense in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of amounts capitalized and regulatory deferrals. (2) Amounts presented in the tables above are included in Other income (expense), net in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of regulatory deferrals. |
Benefit Plan Contributions [Table Text Block] | The table below reflects the expected contributions to be made to the pension and postretirement benefit plans during 2020: CenterPoint Energy Houston Electric CERC (in millions) Expected minimum contribution to pension plans during 2020 $ 84 $ — $ — Expected contribution to postretirement benefit plans in 2020 11 3 3 The table below reflects the contributions made to the pension and postretirement benefit plans during 2020: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Pension plans $ 79 $ — $ — $ 84 $ — $ — Postretirement benefit plans 2 1 1 8 3 2 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Regulatory Assets and Liabilities, Other Disclosures [Abstract] | |
Amount Allowed equity return recognized in period [Table Text Block] | The timing of CenterPoint Energy’s and Houston Electric’s recognition of the equity return will vary each period based on amounts actually collected during that period. The unrecognized equity return will be recognized as it is recovered in rates through 2024. The actual amounts recognized are adjusted at least annually to correct any over-collections or under-collections during the preceding 12 months. CenterPoint Energy and Houston Electric Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Allowed equity return recognized $ 10 $ 14 $ 24 $ 38 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The table below summarizes the Registrants’ outstanding interest rate hedging activity: September 30, 2020 December 31, 2019 Hedging Classification Notional Principal (in millions) Economic hedge (1) $ 84 $ 84 (1) Relates to interest rate derivative instruments at SIGECO. |
Fair Value of Derivative Instruments [Table Text Block] | The following tables present information about derivative instruments and hedging activities. The first table provides a balance sheet overview of Derivative Assets and Liabilities, while the last table provides a breakdown of the related income statement impacts. Fair Value of Derivative Instruments and Hedged Items (CenterPoint Energy) September 30, 2020 December 31, 2019 Balance Sheet Location Derivative Derivative Derivative Derivative (in millions) Derivatives not designated as hedging instruments: Natural gas derivatives (1) Current Liabilities: Non-trading derivative liabilities $ — $ 1 $ — $ 7 Natural gas derivatives (1) Other Liabilities: Non-trading derivative liabilities — 6 — 15 Interest rate derivatives Other Liabilities — 24 — 10 Indexed debt securities derivative (2) Current Liabilities — 918 — 893 Total $ — $ 949 $ — $ 925 (1) Natural gas contracts are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due. However, the mark-to-market fair value of each natural gas contract is in a liability position with no offsetting amounts. (2) Derivative component of the ZENS obligation that represents the ZENS holder’s option to receive the appreciated value of the reference shares at maturity. See Note 11 for further information. |
Income Statement Impact of Derivative Activity [Table Text Block] | Income Statement Impact of Hedge Accounting Activity (CenterPoint Energy) Three Months Ended September 30, Nine Months Ended September 30, Income Statement Location 2020 2019 2020 2019 (in millions) Effects of derivatives not designated as hedging instruments on the income statement: Indexed debt securities derivative Gain (loss) on indexed debt securities $ (84) $ (62) $ (25) $ (216) Total $ (84) $ (62) $ (25) $ (216) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value, assets and liabilities measured on a recurring basis [Table Text Block] | The following tables present information about the Registrants’ assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 and indicate the fair value hierarchy of the valuation techniques utilized by the Registrants to determine such fair value. CenterPoint Energy September 30, 2020 December 31, 2019 Level 2 Level 3 Total Level 2 Level 3 Total Assets (in millions) Corporate equities $ 838 $ — $ — $ 838 $ 825 $ — $ — $ 825 Investments, including money market funds (1) 44 — — 44 49 — — 49 Total assets $ 882 $ — $ — $ 882 $ 874 $ — $ — $ 874 Liabilities Indexed debt securities derivative $ — $ 918 $ — $ 918 $ — $ 893 $ — $ 893 Interest rate derivatives — 24 — 24 — 10 — 10 Natural gas derivatives — 7 — 7 — 22 — 22 Total liabilities $ — $ 949 $ — $ 949 $ — $ 925 $ — $ 925 Houston Electric September 30, 2020 December 31, 2019 Level 2 Level 3 Total Level 2 Level 3 Total Assets (in millions) Investments, including money market funds (1) $ 27 $ — $ — $ 27 $ 32 $ — $ — $ 32 Total assets $ 27 $ — $ — $ 27 $ 32 $ — $ — $ 32 CERC September 30, 2020 December 31, 2019 Level 2 Level 3 Total Level 2 Level 3 Total Assets (in millions) Corporate equities $ 2 $ — $ — $ 2 $ 2 $ — $ — $ 2 Investments, including money market funds (1) 11 — — 11 11 — — 11 Total assets $ 13 $ — $ — $ 13 $ 13 $ — $ — $ 13 (1) Amounts are included in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. |
Estimated fair value of financial instruments, debt instruments [Table Text Block] | The fair values of cash and cash equivalents, investments in debt and equity securities classified as “trading” and short-term borrowings are estimated to be approximately equivalent to carrying amounts and have been excluded from the table below. The carrying amounts of non-trading derivative assets and liabilities and CenterPoint Energy’s ZENS indexed debt securities derivative are stated at fair value and are excluded from the table below. The fair value of each debt instrument is determined by multiplying the principal amount of each debt instrument by a combination of historical trading prices and comparable issue data. These liabilities, which are not measured at fair value in the Registrants’ Condensed Consolidated Balance Sheets, but for which the fair value is disclosed, would be classified as Level 2 in the fair value hierarchy. September 30, 2020 December 31, 2019 Carrying Fair Carrying Fair (in millions) CenterPoint Energy Long-term debt, including current maturities (1) $ 13,268 $ 14,982 $ 15,093 $ 16,067 Houston Electric Long-term debt, including current maturities (1) $ 5,089 $ 5,968 $ 4,950 $ 5,457 CERC Long-term debt, including current maturities $ 2,582 $ 2,973 $ 2,546 $ 2,803 (1) Includes Securitization Bonds debt. |
Unconsolidated Affiliate (Cen_2
Unconsolidated Affiliate (CenterPoint Energy and CERC) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | CenterPoint Energy has the ability to significantly influence the operating and financial policies of Enable, a publicly traded MLP, and, accordingly, accounts for its investment in Enable’s common units using the equity method of accounting. Enable is considered to be a VIE because the power to direct the activities that most significantly impact Enable’s economic performance does not reside with the holders of equity investment at risk. However, CenterPoint Energy is not considered the primary beneficiary of Enable since it does not have the power to direct the activities of Enable that are considered most significant to the economic performance of Enable. As of September 30, 2020, CenterPoint Energy’s maximum exposure to loss related to Enable is limited to its investment in unconsolidated affiliate, its investment in Enable Series A Preferred Units, which are accounted for as securities without a readily determinable fair value, and outstanding current accounts receivable from Enable. Investment in Unconsolidated Affiliates (CenterPoint Energy): September 30, 2020 December 31, 2019 (in millions) Enable $ 748 $ 2,406 Other 1 2 Total $ 749 $ 2,408 CenterPoint Energy evaluates its equity method investments for impairment when factors indicate that a decrease in the value of its investment has occurred and the carrying amount of its investment may not be recoverable. An impairment loss, based on the excess of the carrying value over the estimated fair value of the investment, is recognized in earnings when an impairment is deemed to be other than temporary. Considerable judgment is used in determining if an impairment loss is other than temporary and the amount of any impairment. Based on the severity of the decline in Enable’s common unit price during the three months ended March 31, 2020 due to the macroeconomic conditions related in part to the COVID-19 pandemic, combined with Enable’s announcement on April 1, 2020 to reduce its quarterly distributions per common unit by 50%, and the market outlook indicating excess supply of crude oil and natural gas and continued depressed crude oil and natural gas prices impacting the midstream oil and gas industry, CenterPoint Energy determined, in connection with its preparation of the financial statements, that an other than temporary decrease in the value of its investment in Enable had occurred. CenterPoint Energy reduced the carrying value of its investment in Enable to its estimated fair value of $848 million as of March 31, 2020 and recognized an impairment charge of $1,541 million during the nine months ended September 30, 2020. Both the income approach and market approach were utilized to estimate the fair value of CenterPoint Energy’s equity investment in Enable, which includes common units, general partner interest and incentive distribution rights held by CenterPoint Energy through CNP Midstream. The determination of fair value considered a number of relevant factors including Enable’s common unit price and forecasted distributions, recent comparable transactions and the limited float of Enable’s publicly traded common units. See Note 8 for further discussion of the determination of fair value of CenterPoint Energy’s investment in Enable as of March 31, 2020. CenterPoint Energy did not identify a further decrease in value as of September 30, 2020, and no impairment in its investment in Enable was recorded during the three months ended September 30, 2020. Equity in Earnings (Losses) of Unconsolidated Affiliates, net (CenterPoint Energy): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Enable $ (67) $ 77 $ (1,499) $ 213 Other — — — — Total $ (67) $ 77 $ (1,499) $ 213 CenterPoint Energy recognized a loss of $1,499 million from its investment in Enable for the nine months ended September 30, 2020. This loss included an impairment charge on CenterPoint Energy’s investment in Enable of $1,541 million discussed above, and CenterPoint Energy’s interest in Enable’s $225 million impairment on an equity method investment. Limited Partner Interest and Units Held in Enable (CenterPoint Energy): September 30, 2020 Limited Partner Interest (1) Common Units (2) Enable Series A Preferred Units (3) CenterPoint Energy 53.7 % 233,856,623 14,520,000 OGE 25.5 % 110,982,805 — Public unitholders 20.8 % 90,629,240 — Total units outstanding 100.0 % 435,468,668 14,520,000 (1) Excludes the Enable Series A Preferred Units owned by CenterPoint Energy. (2) Held indirectly through CNP Midstream by CenterPoint Energy. (3) The carrying amount of the Enable Series A Preferred Units, reflected as Preferred units - unconsolidated affiliate on CenterPoint Energy’s Condensed Consolidated Balance Sheets, was $363 million as of both September 30, 2020 and December 31, 2019. No impairment charges or adjustment due to observable price changes were required or recorded during the current or prior reporting periods. Generally, sales to any person or entity (including a series of sales to the same person or entity) of more than 5% of the aggregate of the common units CenterPoint Energy owns in Enable or sales to any person or entity (including a series of sales to the same person or entity) by OGE of more than 5% of the aggregate of the common units it owns in Enable are subject to mutual rights of first offer and first refusal set forth in Enable’s Agreement of Limited Partnership. Interests Held in Enable GP (CenterPoint Energy): September 30, 2020 Management Rights (1) Incentive Distribution Rights (2) CenterPoint Energy (3) 50 % 40 % OGE 50 % 60 % (1) Enable is controlled jointly by CenterPoint Energy and OGE. Sale of CenterPoint Energy’s or OGE’s ownership interests in Enable GP to a third party is subject to mutual rights of first offer and first refusal, and CenterPoint Energy is not permitted to dispose of less than all of its interest in Enable GP. (2) If cash distributions to Enable’s unitholders exceed $0.330625 per common unit in any quarter, Enable GP will receive increasing percentages or incentive distributions rights, up to 50%, of the cash Enable distributes in excess of that amount. In certain circumstances Enable GP will have the right to reset the minimum quarterly distribution and the target distribution levels at which the incentive distributions receive increasing percentages to higher levels based on Enable’s cash distributions at the time of the exercise of this reset election. To date, no incentive distributions have been made. (3) Held indirectly through CNP Midstream. Distributions Received from Enable (CenterPoint Energy): CenterPoint Energy Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Per Unit Cash Distribution Per Unit Cash Distribution Per Unit Cash Distribution Per Unit Cash Distribution (in millions, except per unit amounts) Enable common units (1) $ 0.16525 $ 39 $ 0.3305 $ 77 $ 0.6610 $ 155 $ 0.9665 $ 226 Enable Series A Preferred Units 0.62500 9 0.6250 9 1.8750 27 1.8750 27 Total CenterPoint Energy $ 48 $ 86 $ 182 $ 253 (1) On April 1, 2020, Enable announced a 50% reduction in its quarterly distribution per common unit from $0.3305 to $0.16525. Transactions with Enable (CenterPoint Energy and CERC): The transactions with Enable in the following tables exclude transactions with the Energy Services Disposal Group. See Note 3 for further information. CenterPoint Energy and CERC Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Natural gas expenses, includes transportation and storage costs $ 17 $ 17 $ 61 $ 62 CenterPoint Energy and CERC September 30, 2020 December 31, 2019 (in millions) Accounts payable for natural gas purchases from Enable $ 6 $ 9 Accounts receivable for amounts billed for services provided to Enable 1 2 Summarized unaudited consolidated income information for Enable is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Operating revenues $ 596 $ 699 $ 1,759 $ 2,229 Cost of sales, excluding depreciation and amortization 250 263 653 958 Depreciation and amortization 105 108 314 323 Goodwill and long-lived assets impairments — — 28 — Operating income 100 175 326 507 Net income (loss) attributable to Enable common units (173) 123 (35) 351 Reconciliation of Equity in Earnings (Losses), net: CenterPoint Energy’s interest $ (93) $ 66 $ (19) $ 189 Basis difference amortization (1) 26 11 62 35 Loss on dilution, net of proportional basis difference recognition — — (1) (11) Impairment of CenterPoint Energy’s equity method investment in Enable — — (1,541) — CenterPoint Energy’s equity in earnings (losses), net $ (67) $ 77 $ (1,499) $ 213 (1) Equity in earnings of unconsolidated affiliate includes CenterPoint Energy’s share of Enable earnings adjusted for the amortization of the basis difference of CenterPoint Energy’s original investment in Enable and its underlying equity in net assets of Enable. The basis difference is being amortized through the year 2048. Summarized unaudited consolidated balance sheet information for Enable is as follows: September 30, 2020 December 31, 2019 (in millions) Current assets $ 373 $ 389 Non-current assets 11,402 11,877 Current liabilities 644 780 Non-current liabilities 4,055 4,077 Non-controlling interest 26 37 Preferred equity 362 362 Accumulated other comprehensive loss (7) (3) Enable partners’ equity 6,695 7,013 Reconciliation of Investment in Enable: CenterPoint Energy’s ownership interest in Enable partners’ equity $ 3,592 $ 3,767 CenterPoint Energy’s basis difference (1) (2,844) (1,361) CenterPoint Energy’s equity method investment in Enable $ 748 $ 2,406 (1) Includes the impairment of CenterPoint Energy’s equity method investment in Enable of $1,541 million recorded during the nine months ended September 30, 2020. The basis difference is being amortized through the year 2048. |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (CenterPoint Energy and CERC) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | CenterPoint Energy’s goodwill by reportable segment as of September 30, 2020 and December 31, 2019 is as follows: December 31, 2019 Impairment September 30, 2020 (in millions) Indiana Electric Integrated (1) $ 1,121 $ 185 $ 936 Natural Gas Distribution 3,312 — 3,312 Corporate and Other 449 — 449 Total $ 4,882 $ 185 $ 4,697 (1) CenterPoint Energy recognized a non-cash goodwill impairment charge as a result of the March 31, 2020 goodwill impairment test. CERC’s goodwill by reportable segment as of September 30, 2020 and December 31, 2019 is as follows: (in millions) Natural Gas Distribution $ 746 Corporate and Other 11 Total $ 757 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The tables below present information on CenterPoint Energy’s other intangible assets recorded in Other non-current assets on CenterPoint Energy’s Condensed Consolidated Balance Sheets and the related amortization expense included in Depreciation and amortization on CenterPoint Energy’s Condensed Statements of Consolidated Income, unless otherwise indicated. September 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Balance Gross Carrying Amount Accumulated Amortization Net Balance (in millions) Customer relationships $ 33 $ (7) $ 26 $ 33 $ (4) $ 29 Trade names 16 (3) 13 16 (1) 15 Construction backlog (1) 5 (4) 1 5 (4) 1 Operation and maintenance agreements (1) 12 (1) 11 12 — 12 Other 2 (1) 1 2 (1) 1 Total $ 68 $ (16) $ 52 $ 68 $ (10) $ 58 (1) Amortization expense related to the operation and maintenance agreements and construction backlog is included in Non-utility cost of revenues, including natural gas on CenterPoint Energy’s Condensed Statements of Consolidated Income. |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Amortization expense of intangible assets recorded in Depreciation and amortization (1) $ 2 $ 1 $ 5 $ 2 Amortization expense of intangible assets recorded in Non-utility cost of revenues, including natural gas (1) — 1 1 4 (1) Assets held for sale are not amortized. The table reflects amortization on continuing operations. For further information on discontinued operations, see Note 3. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | CenterPoint Energy estimates that amortization expense of intangible assets with finite lives for the next five years will be as follows: Amortization Expense (1) CenterPoint Energy (in millions) Remaining three months of 2020 $ 2 2021 6 2022 6 2023 6 2024 5 2025 5 (1) Assets held for sale are not amortized. The table reflects amortization on continuing operations. For further information on discontinued operations, see Note 3. |
Indexed Debt Securities (ZENS_2
Indexed Debt Securities (ZENS) and Securities Related to ZENS (CenterPoint Energy) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Indexed Debt Securities and Marketable Securities [Table Text Block] | A subsidiary of CenterPoint Energy holds shares of certain securities detailed in the table below, which are securities with a readily determinable fair value and are expected to be held to facilitate CenterPoint Energy’s ability to meet its obligation under the ZENS. Unrealized gains and losses resulting from changes in the market value of the ZENS-Related Securities are recorded in CenterPoint Energy’s Condensed Statements of Consolidated Income. Shares Held September 30, 2020 December 31, 2019 AT&T Common 10,212,945 10,212,945 Charter Common 872,503 872,503 (b) ZENS In September 1999, CenterPoint Energy issued ZENS having an original principal amount of $1.0 billion of which $828 million remained outstanding as of September 30, 2020. Each ZENS is exchangeable at the holder’s option at any time for an amount of cash equal to 95% of the market value of the reference shares attributable to such note. The number and identity of the reference shares attributable to each ZENS are adjusted for certain corporate events. CenterPoint Energy’s reference shares for each ZENS consisted of the following: September 30, 2020 December 31, 2019 (in shares) AT&T Common 0.7185 0.7185 Charter Common 0.061382 0.061382 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities [Table Text Block] | Credit Facilities . The Registrants had the following revolving credit facilities as of September 30, 2020: Execution Registrant Size of Draw Rate of LIBOR plus (1) Financial Covenant Limit on Debt for Borrowed Money to Capital Ratio Debt for Borrowed Money to Capital Ratio as of September 30, 2020 (2) Termination Date (in millions) March 3, 2016 CenterPoint Energy $ 3,300 1.500% 65% (3) 53.4% March 3, 2022 July 14, 2017 CenterPoint Energy (4) 400 1.125% 65% 52.5% July 14, 2022 March 3, 2016 Houston Electric 300 1.250% 65% (3) 53.2% March 3, 2022 March 3, 2016 CERC 900 1.125% 65% 52.7% March 3, 2022 Total $ 4,900 (1) Based on current credit ratings. (2) As defined in the revolving credit facility agreements, excluding Securitization Bonds. (3) For CenterPoint Energy and Houston Electric, the financial covenant limit will temporarily increase from 65% to 70% if Houston Electric experiences damage from a natural disaster in its service territory and CenterPoint Energy certifies to the administrative agent that Houston Electric has incurred system restoration costs reasonably likely to exceed $100 million in a consecutive 12-month period, all or part of which Houston Electric intends to seek to recover through securitization financing. Such temporary increase in the financial covenant would be in effect from the date CenterPoint Energy delivers its certification until the earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of CenterPoint Energy’s certification or (iii) the revocation of such certification. (4) This credit facility was issued by VUHI, is guaranteed by SIGECO, Indiana Gas and VEDO and includes a $10 million swing line sublimit and a $20 million letter of credit sublimit. This credit facility backstops VUHI’s commercial paper program. On September 30, 2020, VCC terminated its $200 million credit agreement dated as of July 14, 2017 after determining that it was no longer necessary for financing purposes. VCC did not incur any penalties in connection with the early termination. The Registrants, including the subsidiaries of CenterPoint Energy discussed above, were in compliance with all financial debt covenants as of September 30, 2020. The table below reflects the utilization of the Registrants’ respective revolving credit facilities: September 30, 2020 December 31, 2019 Registrant Loans Letters Commercial Weighted Average Interest Rate Loans Letters Commercial Weighted Average Interest Rate (in millions, except weighted average interest rate) CenterPoint Energy (1) $ — $ 8 $ 638 0.19 % $ — $ 6 $ 1,633 1.95 % CenterPoint Energy (2) — — 176 0.19 % — — 268 2.08 % Houston Electric — — — — % — — — — % CERC — — 407 0.17 % — 1 377 1.94 % Total $ — $ 8 $ 1,221 $ — $ 7 $ 2,278 (1) CenterPoint Energy’s outstanding commercial paper generally has maturities of 60 days or less. (2) This credit facility was issued by VUHI and is guaranteed by SIGECO, Indiana Gas and VEDO. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The Registrants reported the following effective tax rates: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 CenterPoint Energy - Continuing operations (1) (2) (9) % 15 % 29 % 12 % CenterPoint Energy - Discontinued operations (3) (4) — % 46 % (13) % 30 % Houston Electric (5) 14 % 18 % 15 % 18 % CERC - Continuing operations (6) (7) 60 % 23 % 13 % 9 % CERC - Discontinued operations (8) (9) 33 % 40 % 3 % 21 % (1) CenterPoint Energy’s lower effective tax rate on income from continuing operations for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 was primarily driven by the recognition of additional tax benefit for increased NOL carryback claims under the CARES Act and the effects of the lower book earnings on other rate drivers in the three months ended September 30, 2020. (2) CenterPoint Energy’s higher effective tax rate on the loss from continuing operations for the nine months ended September 30, 2020 compared to the income from continuing operations for the nine months ended September 30, 2019 was primarily due to lower earnings from the impairment of CenterPoint Energy’s investment in Enable. Other effective tax rate drivers include the tax benefit for the NOL carryback claims under the CARES Act, which was partially offset by the non-deductible goodwill impairment at the Indiana Electric Integrated reporting unit. (3) CenterPoint Energy’s lower effective tax rate on the loss from discontinued operations for the three months ended September 30, 2020 compared to the income from discontinued operations for the three months ended September 30, 2019 was primarily due to lower book earnings in the three months ended September 30, 2020. (4) CenterPoint Energy’s lower effective tax rate on the loss from discontinued operations for the nine months ended September 30, 2020 compared to the income from discontinued operations for the nine months ended September 30, 2019 was primarily due to the tax impacts from the sale of the Infrastructure Services Disposal Group on April 9, 2020 and the sale of the Energy Services Disposal Group on June 1, 2020, the effect of which was compounded by lower book earnings in the nine months ended September 30, 2020. See Note 3 for further information. (5) Houston Electric’s lower effective tax rate for the three and nine months ended September 30, 2020 compared to the same periods for 2019 was primarily due to an increase in the amount of amortization of the net regulatory EDIT liability. (6) CERC’s higher effective tax rate on the loss from continuing operations for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 was driven by an increase in the amount of amortization of the net regulatory EDIT liability and a larger return-to-accrual tax benefit recognized in the three months ended September 30, 2020. These were partially offset by the absence of state deferred tax benefits as a result of certain state tax law changes and the release of a valuation allowance on certain state NOLs that were reported in the three months ended September 30, 2019. (7) CERC’s higher effective tax rate on income from continuing operations for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 was driven by the absence of state deferred tax benefits as a result of certain state tax law changes and the release of a valuation allowance on certain state NOLs that were reported in the nine months ended September 30, 2019. These were partially offset by an increase in the amount of amortization of the net regulatory EDIT liability and a larger return-to-accrual tax benefit recognized in the nine months ended September 30, 2020. (8) CERC’s lower effective tax rate on income from discontinued operations for the three months ended September 30, 2020 compared to the income from discontinued operations for the three months ended September 30, 2019 was primarily due to lower book earnings in the three months ended September 30, 2020. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment [Table Text Block] | As of September 30, 2020, minimum purchase obligations are approximately: CenterPoint Energy CERC (in millions) Remaining three months of 2020 $ 224 $ 163 2021 662 486 2022 496 325 2023 418 271 2024 340 246 2025 290 220 2026 and beyond 1,817 1,496 |
Schedule of Environmental Loss Contingencies by Site [Table Text Block] | Total costs that may be incurred in connection with addressing these sites cannot be determined at this time. The estimated accrued costs are limited to CenterPoint Energy’s and CERC’s share of the remediation efforts and are therefore net of exposures of other PRPs. The estimated range of possible remediation costs for the sites for which CenterPoint Energy and CERC believe they may have responsibility was based on remediation continuing for the minimum time frame given in the table below. September 30, 2020 CenterPoint Energy CERC (in millions, except years) Amount accrued for remediation $ 12 $ 7 Minimum estimated remediation costs 7 4 Maximum estimated remediation costs 54 32 Minimum years of remediation 5 30 Maximum years of remediation 50 50 |
Earnings Per Share (CenterPoi_2
Earnings Per Share (CenterPoint Energy) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table reconciles numerators and denominators of CenterPoint Energy’s basic and diluted earnings per common share. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions, except per share and share amounts) Numerator: Income (loss) from continuing operations $ 127 $ 251 $ (791) $ 545 Less: Preferred stock dividend requirement (Note 19) 36 29 102 88 Less: Amortization of beneficial conversion feature (Note 19) 16 — 25 — Less: Undistributed earnings allocated to preferred shareholders (1) — — — — Income (loss) available to common shareholders from continuing operations - basic and diluted 75 222 (918) 457 Income (loss) available to common shareholders from discontinued operations - basic and diluted (6) 19 (182) 89 Income (loss) available to common shareholders - basic and diluted $ 69 $ 241 $ (1,100) $ 546 Denominator: Weighted average common shares outstanding - basic 544,811,000 502,228,000 525,160,000 501,986,000 Plus: Incremental shares from assumed conversions: Restricted stock (4) 3,377,000 2,852,000 — 2,852,000 Series B Preferred Stock (2) — — — — Series C Preferred Stock (3) — — — — Weighted average common shares outstanding - diluted 548,188,000 505,080,000 525,160,000 504,838,000 Earnings (loss) per common share: Basic earnings (loss) per common share - continuing operations $ 0.14 $ 0.44 $ (1.75) $ 0.91 Basic earnings (loss) per common share - discontinued operations (0.01) 0.04 (0.35) 0.18 Basic Earnings (Loss) Per Common Share $ 0.13 $ 0.48 $ (2.10) $ 1.09 Diluted earnings (loss) per common share - continuing operations $ 0.14 $ 0.44 $ (1.75) $ 0.91 Diluted earnings (loss) per common share - discontinued operations (0.01) 0.03 (0.35) 0.17 Diluted Earnings (Loss) Per Common Share $ 0.13 $ 0.47 $ (2.10) $ 1.08 (1) There were no undistributed earnings to be allocated to participating securities for the three and nine months ended September 30, 2020. (2) The computation of diluted earnings per common share outstanding for the three and nine months ended September 30, 2020 excludes 35,940,000 and 35,923,000 potentially dilutive shares from the denominator, respectively, because the shares would be anti-dilutive. The computation of diluted earnings per common share outstanding for the three and nine months ended September 30, 2019 excludes 33,537,000 and 33,537,000 potentially dilutive shares from the denominator, respectively, because the shares would be anti-dilutive. (3) The computation of diluted earnings per common share outstanding for the three and nine months ended September 30, 2020 excludes 47,355,000 and 25,578,000 potentially dilutive shares, respectively, of Series C Preferred Stock from the denominator because the shares would be anti-dilutive. (4) 3,377,000 incremental common shares from assumed conversions of restricted stock have not been included in the computation of diluted earnings (loss) per share for the nine months ended September 30, 2020, respectively, as their inclusion would be anti-dilutive. |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Financial data for reportable segments is as follows, including Corporate and Other, Eliminations and Discontinued Operations for reconciliation purposes: CenterPoint Energy Three Months Ended September 30, 2020 2019 Revenues from Equity in Earnings of Unconsolidated Affiliates Net Income (Loss) Revenues from Equity in Earnings of Unconsolidated Affiliates Net Income (Loss) (in millions) Houston Electric T&D $ 828 (1) $ — $ 157 $ 859 (1) $ — $ 185 Indiana Electric Integrated 157 — 31 165 — 34 Natural Gas Distribution 560 — 5 541 — 6 Midstream Investments (2) — (67) (62) — 77 50 Corporate and Other 77 — (4) 93 — (24) Continuing Operations $ 1,622 $ (67) 127 $ 1,658 $ 77 251 Discontinued Operations, net (6) 19 Consolidated $ 121 $ 270 Nine Months Ended September 30, 2020 2019 Revenues from Equity in Earnings of Unconsolidated Affiliates Net Income (Loss) Revenues from Equity in Earnings of Unconsolidated Affiliates Net Income (Loss) (in millions) Houston Electric T&D $ 2,186 (1) $ — $ 281 $ 2,313 (1) $ — $ 315 Indiana Electric Integrated 414 — (121) 388 — 41 Natural Gas Distribution 2,519 — 242 2,629 — 149 Midstream Investments (2) — (1,499) (1,165) — 213 124 Corporate and Other 245 — (28) 215 — (84) Continuing Operations $ 5,364 $ (1,499) (791) $ 5,545 $ 213 545 Discontinued Operations, net (182) 89 Consolidated $ (973) $ 634 (1) Houston Electric T&D’s revenues from major external customers are as follows (CenterPoint Energy and Houston Electric): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Affiliates of NRG $ 243 $ 231 $ 573 $ 547 Affiliates of Vistra Energy Corp. 128 83 301 196 (2) Includes the impairment of CenterPoint Energy’s equity method investment in Enable of $1,541 million recorded during the nine months ended September 30, 2020 and CenterPoint Energy’s interest in Enable’s $225 million impairment on an equity method investment during the three and nine months ended September 30, 2020. Houston Electric consists of a single reportable segment; therefore, a tabular reportable segment presentation has not been included herein. CERC Three Months Ended September 30, 2020 2019 Revenues from Net Income (Loss) Revenues from Net Income (Loss) (in millions) Natural Gas Distribution $ 422 $ 1 $ 415 $ 5 Corporate and Other 4 (7) 5 (15) Continuing Operations $ 426 (6) $ 420 (10) Discontinued Operations, net 2 3 Consolidated $ (4) $ (7) Nine Months Ended September 30, 2020 2019 Revenues from Net Income (Loss) Revenues from Net Income (Loss) (in millions) Natural Gas Distribution $ 1,910 $ 155 $ 2,152 $ 134 Corporate and Other 10 (13) 6 (32) Continuing Operations $ 1,920 142 $ 2,158 102 Discontinued Operations, net (66) 57 Consolidated $ 76 $ 159 CenterPoint Energy and CERC Total Assets September 30, 2020 December 31, 2019 CenterPoint CERC CenterPoint CERC (in millions) Houston Electric T&D $ 11,296 $ — $ 11,264 $ — Indiana Electric Integrated 3,142 — 3,168 — Natural Gas Distribution 14,297 7,809 14,105 7,698 Midstream Investments 805 — 2,473 — Corporate and Other, net of eliminations 3,165 (30) 2,555 (90) Continuing Operations 32,705 7,779 33,565 7,608 Assets Held for Sale — — 1,964 904 Consolidated $ 32,705 $ 7,779 $ 35,529 $ 8,512 |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Houston Electric T&D’s revenues from major external customers are as follows (CenterPoint Energy and Houston Electric): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Affiliates of NRG $ 243 $ 231 $ 573 $ 547 Affiliates of Vistra Energy Corp. 128 83 301 196 |
Related Party Transactions (H_2
Related Party Transactions (Houston Electric and CERC) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Money Pool Investment and Borrowing [Table Text Block] | The table below summarizes CenterPoint Energy money pool activity: September 30, 2020 December 31, 2019 Houston Electric CERC Houston Electric CERC (in millions, except interest rates) Money pool investments (borrowings) (1) $ 25 $ — $ 481 $ — Weighted average interest rate 0.19 % 0.19 % 1.98 % 1.98 % (1) Included in Accounts and notes receivable (payable)–affiliated companies on Houston Electric’s and CERC’s respective Condensed Consolidated Balance Sheets. |
Schedule of Related Party Transactions [Table Text Block] | Houston Electric and CERC affiliate related net interest income (expense) were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Houston Electric CERC Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Interest income (expense) (1) $ — $ — $ 5 $ 1 $ — $ — $ 14 $ 3 (1) Interest income is included in Other income (expense), net and interest expense is included in Interest and other finance charges on Houston Electric’s and CERC’s respective Condensed Statements of Consolidated Income. CenterPoint Energy provides some corporate services to Houston Electric and CERC. The costs of services have been charged directly to Houston Electric and CERC using methods that management believes are reasonable. These methods include usage rates, dedicated asset assignment and proportionate corporate formulas based on operating expenses, assets, gross margin, employees and a composite of assets, gross margin and employees. Houston Electric provides certain services to CERC. These services are billed at actual cost, either directly or as an allocation and include fleet services, shop services, geographic services, surveying and right-of-way services, radio communications, data circuit management and field operations. Additionally, CERC provides certain services to Houston Electric. These services are billed at actual cost, either directly or as an allocation and include line locating and other miscellaneous services. These charges are not necessarily indicative of what would have been incurred had Houston Electric and CERC not been affiliates. Amounts charged for these services were as follows and are included primarily in operation and maintenance expenses: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Houston Electric CERC Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Corporate service charges $ 48 $ 52 $ 38 $ 31 $ 142 $ 156 $ 132 $ 106 Net affiliate service charges (billings) (4) 4 (3) 3 (14) 14 (7) 7 The table below presents transactions among Houston Electric, CERC and their parent, CenterPoint Energy. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Houston Electric CERC Houston Electric CERC Houston Electric CERC Houston Electric CERC (in millions) Cash dividends paid to parent $ 52 $ 8 $ 60 $ 16 $ 457 $ 80 $ 100 $ 119 Cash contribution from parent — — — — — — 590 — Capital distribution to parent associated with the sale of CES — — — — — 286 — — Property, plant and equipment from parent (1) 35 23 — — 35 23 — — (1) Property, plant and equipment purchased from CenterPoint Energy at its net carrying value on the date of purchase. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Dividends Declared [Table Text Block] | CenterPoint Energy paid dividends on its Common Stock during the nine months ended September 30, 2020 and 2019 as presented in the table below: Declaration Date Record Date Payment Date Per Share (1) Total February 3, 2020 February 20, 2020 March 12, 2020 $ 0.2900 $ 145 April 24, 2020 May 21, 2020 June 11, 2020 0.1500 82 July 29, 2020 August 20, 2020 September 10, 2020 0.1500 82 Total 2020 $ 0.5900 $ 309 December 12, 2018 February 21, 2019 March 14, 2019 $ 0.2875 $ 144 April 25, 2019 May 16, 2019 June 13, 2019 0.2875 144 July 31, 2019 August 15, 2019 September 12, 2019 0.2875 145 Total 2019 $ 0.8625 $ 433 (1) On April 1, 2020, in response to the reduction in cash flow related to the reduction in Enable quarterly common unit distributions announced by Enable on April 1, 2020, CenterPoint Energy announced a reduction of its quarterly Common Stock dividend per share from $0.2900 to $0.1500. CenterPoint Energy paid dividends on its Series A Preferred Stock during the nine months ended September 30, 2020 and 2019 as presented in the table below: Declaration Date Record Date Payment Date Per Share Total February 3, 2020 February 14, 2020 March 2, 2020 $ 30.6250 $ 25 July 29, 2020 August 14, 2020 September 1, 2020 30.6250 24 Total 2020 $ 61.2500 $ 49 December 12, 2018 February 15, 2019 March 1, 2019 $ 32.1563 $ 26 July 31, 2019 August 15, 2019 September 3, 2019 30.6250 24 Total 2019 $ 62.7813 $ 50 CenterPoint Energy paid dividends on its Series B Preferred Stock during the nine months ended September 30, 2020 and 2019 as presented in the table below: Declaration Date Record Date Payment Date Per Share Total February 3, 2020 February 14, 2020 March 2, 2020 $ 17.5000 $ 17 April 24, 2020 May 15, 2020 June 1, 2020 17.5000 17 July 29, 2020 August 14, 2020 September 1, 2020 17.5000 17 Total 2020 $ 52.5000 $ 51 December 12, 2018 February 15, 2019 March 1, 2019 $ 17.5000 $ 17 April 25, 2019 May 15, 2019 June 3, 2019 17.5000 17 July 31, 2019 August 15, 2019 September 3, 2019 17.5000 17 Total 2019 $ 52.5000 $ 51 CenterPoint Energy paid dividends on its Series C Preferred Stock during the nine months ended September 30, 2020 as presented in the table below: Declaration Date Record Date Payment Date Per Share Total April 24, 2020 (1) May 21, 2020 June 11, 2020 $ 0.1500 $ 7 July 29, 2020 August 20, 2020 September 10, 2020 0.1500 7 Total 2020 $ 0.3000 $ 14 (1) Declaration date for dividends on Common Stock. The Series C Preferred Stock is entitled to participate in any dividend or distribution (excluding those payable in Common Stock) with the Common Stock on a pari passu, pro rata, as-converted basis. The per share amount reflects the dividend per share of Common Stock as if the Series C Preferred Stock were converted into Common Stock. Income Allocated to Preferred Shareholders (CenterPoint Energy) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Series A Preferred Stock $ 12 $ 12 $ 37 $ 37 Series B Preferred Stock 17 17 51 51 Series C Preferred Stock 7 — 14 — Preferred dividend requirement 36 29 102 88 Amortization of beneficial conversion feature 16 — 25 — Total income allocated to preferred shareholders $ 52 $ 29 $ 127 $ 88 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in accumulated comprehensive income (loss) are as follows: Three Months Ended September 30, 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Beginning Balance $ (84) $ — $ 10 $ (105) $ (15) $ 5 Other comprehensive loss before reclassifications: Deferred loss from interest rate derivatives (1) — — — (2) — — Other comprehensive income (loss) from unconsolidated affiliates 1 — — (2) — — Amounts reclassified from accumulated other comprehensive loss: Actuarial losses (2) 2 — — 2 — — Tax expense (1) — — — — — Net current period other comprehensive income (loss) 2 — — (2) — — Ending Balance $ (82) $ — $ 10 $ (107) $ (15) $ 5 Nine Months Ended September 30, 2020 2019 CenterPoint Energy Houston Electric CERC CenterPoint Energy Houston Electric CERC (in millions) Beginning Balance $ (98) $ (15) $ 10 $ (108) $ (14) $ 5 Other comprehensive loss before reclassifications: Deferred loss from interest rate derivatives (1) — — — (3) (1) — Other comprehensive loss from unconsolidated affiliates (2) — — (2) — — Amounts reclassified from accumulated other comprehensive loss: Prior service cost (2) 1 — — 1 — — Actuarial losses (2) 5 — — 6 — — Reclassification of deferred loss from cash flow hedges realized in net income — — — 1 — — Reclassification of deferred loss from cash flow hedges (3) 19 19 — — — — Tax expense (7) (4) — (2) — — Net current period other comprehensive income (loss) 16 15 — 1 (1) — Ending Balance $ (82) $ — $ 10 $ (107) $ (15) $ 5 (1) Gains and losses are reclassified from Accumulated other comprehensive income into income when the hedged transactions affect earnings. The reclassification amounts are included in Interest and other finance charges in each of the Registrants’ respective Statements of Consolidated Income. Over the next twelve months estimated amortization from Accumulated Comprehensive Income into income is expected to be immaterial. (2) Amounts are included in the computation of net periodic cost and are reflected in Other income (expense), net in each of the Registrants’ respective Statements of Consolidated Income. (3) The cost of debt approved by the PUCT as part of Houston Electric’s Stipulation and Settlement Agreement included unrealized gains and losses on interest rate hedges. Accordingly, deferred gains and losses on interest rate hedges were reclassified to regulatory assets or liabilities, as appropriate. |
Subsequent Events (CenterPoin_2
Subsequent Events (CenterPoint Energy) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Schedule of Subsequent Events [Table Text Block] | CenterPoint Energy Dividend Declarations Equity Instrument Declaration Date Record Date Payment Date Per Share Common Stock October 29, 2020 November 19, 2020 December 10, 2020 $ 0.1500 Series B Preferred Stock October 29, 2020 November 13, 2020 December 1, 2020 17.5000 Series C Preferred Stock (1) October 29, 2020 November 19, 2020 December 10, 2020 0.1500 (1) The Series C Preferred Stock is entitled to participate in any dividend or distribution (excluding those payable in Common Stock) with the Common Stock on a pari passu, pro rata, as-converted basis. The per share amount reflects the dividend per share of Common Stock as if the Series C Preferred Stock were converted into Common Stock. Enable Distributions Declarations (CenterPoint Energy) Equity Instrument Declaration Date Record Date Payment Date Per Unit Distribution Expected Cash Distribution Enable common units November 3, 2020 November 17, 2020 November 24, 2020 $ 0.16525 $ 39 Enable Series A Preferred Units November 3, 2020 November 3, 2020 November 13, 2020 0.62500 9 Series C Preferred Stock |
Background and Basis of Prese_2
Background and Basis of Presentation (Details) | 9 Months Ended | |
Sep. 30, 2020stateshares | ||
Enable Midstream Partners [Member] | ||
Ownership percentage of equity method investment | 53.70% | [1] |
Enable Midstream Partners [Member] | Series A Preferred Units [Member] | ||
Preferred units held | shares | 14,520,000 | [2] |
Natural Gas Distribution [Member] | ||
Number of States in which the Entity Performs Gas Delivery Services | 48 | |
CERC Corp [Member] | Natural Gas Distribution [Member] | ||
Number of states in which entity operates | 6 | |
Number of States in which the Entity Performs Gas Delivery Services | 48 | |
CERC Corp [Member] | Energy Services [Member] | ||
Number of states in which entity operates | 30 | |
Enable GP, LLC [Member] | CenterPoint Energy [Member] | ||
Management rights ownership percentage | 50.00% | [3],[4] |
Incentive Distribution Right, Percentage | 40.00% | [4],[5] |
[1] | Excludes the Enable Series A Preferred Units owned by CenterPoint Energy. | |
[2] | The carrying amount of the Enable Series A Preferred Units, reflected as Preferred units - unconsolidated affiliate on CenterPoint Energy’s Condensed Consolidated Balance Sheets, was $363 million as of both September 30, 2020 and December 31, 2019. No impairment charges or adjustment due to observable price changes were required or recorded during the current or prior reporting periods. | |
[3] | Enable is controlled jointly by CenterPoint Energy and OGE. Sale of CenterPoint Energy’s or OGE’s ownership interests in Enable GP to a third party is subject to mutual rights of first offer and first refusal, and CenterPoint Energy is not permitted to dispose of less than all of its interest in Enable GP. | |
[4] | Held indirectly through CNP Midstream. | |
[5] | If cash distributions to Enable’s unitholders exceed $0.330625 per common unit in any quarter, Enable GP will receive increasing percentages or incentive distributions rights, up to 50%, of the cash Enable distributes in excess of that amount. In certain circumstances Enable GP will have the right to reset the minimum quarterly distribution and the target distribution levels at which the incentive distributions receive increasing percentages to higher levels based on Enable’s cash distributions at the time of the exercise of this reset election. To date, no incentive distributions have been made. |
Divestitures (CenterPoint Ene_3
Divestitures (CenterPoint Energy and CERC) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |||||
Discontinued Operation, Additional Disclosures [Abstract] | |||||||||
Cash proceeds from sale | $ 1,136 | $ 0 | |||||||
Goodwill Impairment | $ 0 | $ 0 | 185 | 0 | |||||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | |||||||||
Receivables, net | $ 637 | ||||||||
Accrued unbilled revenues | 117 | ||||||||
Natural gas inventory | 67 | ||||||||
Materials and supplies | 6 | ||||||||
Non-trading derivative assets | 136 | ||||||||
Other | 39 | ||||||||
Total current assets held for sale | 0 | 0 | 1,002 | ||||||
Property, plant and equipment, net | 321 | ||||||||
Goodwill | 282 | ||||||||
Non-trading derivative assets | 58 | ||||||||
Other | 301 | ||||||||
Total non-current assets held for sale | 0 | 0 | 962 | ||||||
Total assets held for sale | 1,964 | ||||||||
Accounts payable | 344 | ||||||||
Taxes accrued | 2 | ||||||||
Non-trading derivative liabilities | 44 | ||||||||
Other | 65 | ||||||||
Total current liabilities held for sale | 0 | 0 | 455 | ||||||
Non-trading derivative liabilities | 14 | ||||||||
Benefit obligations | 4 | ||||||||
Other | 25 | ||||||||
Total non-current liabilities held for sale | 0 | 0 | 43 | ||||||
Total liabilities held for sale | 498 | ||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||
Revenues | 0 | 1,117 | 1,417 | 3,683 | |||||
Non-utility cost of revenues | 0 | 811 | 1,158 | 2,929 | |||||
Operation and maintenance | 0 | 252 | 218 | 577 | |||||
Depreciation and amortization | 0 | 18 | 0 | 49 | |||||
Taxes other than income taxes | 0 | 1 | 4 | 1 | |||||
Total | 0 | 1,082 | 1,380 | 3,556 | |||||
Income (loss) from Discontinued Operations before income taxes | 0 | 35 | 37 | 127 | |||||
Gain (loss) on classification to held for sale, net (2) | [1] | (6) | 0 | (198) | 0 | ||||
Income tax expense (benefit) | 0 | 16 | 21 | 38 | |||||
Net income (loss) from Discontinued Operations | (6) | 19 | (182) | 89 | |||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||||
Depreciation and Amortization | 0 | 49 | |||||||
Infrastructure Services Disposal Group [Member] | |||||||||
Discontinued Operation, Additional Disclosures [Abstract] | |||||||||
Sales price of outstanding equity interests | 850 | 850 | |||||||
Cash proceeds from sale | 850 | ||||||||
Net deferred tax liabilities on sale recognized as deferred income tax benefit by CenterPoint Energy | 127 | 127 | |||||||
Current tax expense (benefit) of cash taxes payable upon sale | 2 | (157) | |||||||
Goodwill Impairment | 82 | ||||||||
Cost to sell | 14 | ||||||||
Pre-tax gain on sale | 9 | 6 | |||||||
Maximum contractual exposure under Securities Purchase Agreement | 21 | 21 | |||||||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | |||||||||
Receivables, net | 192 | ||||||||
Accrued unbilled revenues | 109 | ||||||||
Natural gas inventory | 0 | ||||||||
Materials and supplies | 6 | ||||||||
Non-trading derivative assets | 0 | ||||||||
Other | 4 | ||||||||
Total current assets held for sale | 311 | ||||||||
Property, plant and equipment, net | 295 | ||||||||
Goodwill | 220 | ||||||||
Non-trading derivative assets | 0 | ||||||||
Other | 234 | ||||||||
Total non-current assets held for sale | 749 | ||||||||
Total assets held for sale | 1,060 | ||||||||
Accounts payable | 45 | ||||||||
Taxes accrued | 2 | ||||||||
Non-trading derivative liabilities | 0 | ||||||||
Other | 40 | ||||||||
Total current liabilities held for sale | 87 | ||||||||
Non-trading derivative liabilities | 0 | ||||||||
Benefit obligations | 0 | ||||||||
Other | 16 | ||||||||
Total non-current liabilities held for sale | 16 | ||||||||
Total liabilities held for sale | 103 | ||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||
Revenues | 0 | 377 | 250 | 849 | [2] | ||||
Non-utility cost of revenues | 0 | 96 | 50 | 228 | [2] | ||||
Operation and maintenance | 0 | 235 | 184 | 526 | [2] | ||||
Depreciation and amortization | 0 | 15 | 0 | 39 | [2] | ||||
Taxes other than income taxes | 0 | 1 | 1 | 1 | [2] | ||||
Total | 0 | 347 | 235 | 794 | [2] | ||||
Income (loss) from Discontinued Operations before income taxes | 0 | 30 | 15 | 55 | [2] | ||||
Gain (loss) on classification to held for sale, net (2) | [1] | (9) | 0 | (102) | 0 | [2] | |||
Income tax expense (benefit) | (1) | 15 | 24 | 21 | [2] | ||||
Net income (loss) from Discontinued Operations | (8) | 15 | (111) | 34 | [2] | ||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||||
Depreciation and Amortization | 0 | 39 | [2] | ||||||
Amortization of intangible assets in Non-utility cost of revenues | 0 | 15 | [2] | ||||||
Write-down of natural gas inventory | 0 | 0 | [2] | ||||||
Capital expenditures | 16 | 53 | [2] | ||||||
Accounts payable related to capital expenditures | 2 | 1 | [2] | ||||||
Discontinued Operation, Continuing Involvement [Abstract] | |||||||||
Pipeline construction and repair services capitalized | 0 | [3] | 45 | 34 | [3] | 112 | [4] | ||
Pipeline construction and repair services charges | 0 | [3] | 1 | 1 | [3] | 5 | [4] | ||
Energy Services Disposal Group [Member] | |||||||||
Discontinued Operation, Additional Disclosures [Abstract] | |||||||||
Sales price of outstanding equity interests | 400 | 400 | |||||||
Cash proceeds from sale | 286 | ||||||||
Receivable from sale of disposal group | 79 | 79 | |||||||
Net deferred tax liabilities on sale recognized as deferred income tax benefit by CenterPoint Energy | 3 | 3 | |||||||
Current tax expense (benefit) of cash taxes payable upon sale | (1) | (4) | |||||||
Goodwill Impairment | 62 | ||||||||
Loss from reclassification to held for sale | 0 | 31 | |||||||
Cost to sell | 0 | 6 | |||||||
Pre-tax gain on sale | (3) | (3) | |||||||
Outstanding obligation related to AMAs | 31 | 31 | 0 | ||||||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | |||||||||
Receivables, net | 445 | ||||||||
Accrued unbilled revenues | 8 | ||||||||
Natural gas inventory | 67 | ||||||||
Materials and supplies | 0 | ||||||||
Non-trading derivative assets | 136 | ||||||||
Other | 35 | ||||||||
Total current assets held for sale | 691 | ||||||||
Property, plant and equipment, net | 26 | ||||||||
Goodwill | 62 | ||||||||
Non-trading derivative assets | 58 | ||||||||
Other | 67 | ||||||||
Total non-current assets held for sale | 213 | ||||||||
Total assets held for sale | 904 | ||||||||
Accounts payable | 299 | ||||||||
Taxes accrued | 0 | ||||||||
Non-trading derivative liabilities | 44 | ||||||||
Other | 25 | ||||||||
Total current liabilities held for sale | 368 | ||||||||
Non-trading derivative liabilities | 14 | ||||||||
Benefit obligations | 4 | ||||||||
Other | 9 | ||||||||
Total non-current liabilities held for sale | 27 | ||||||||
Total liabilities held for sale | 395 | ||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||
Revenues | 0 | 740 | 1,167 | 2,834 | |||||
Non-utility cost of revenues | 0 | 715 | 1,108 | 2,701 | |||||
Operation and maintenance | 0 | 17 | 34 | 51 | |||||
Depreciation and amortization | 0 | 3 | 0 | 10 | |||||
Taxes other than income taxes | 0 | 0 | 3 | 0 | |||||
Total | 0 | 735 | 1,145 | 2,762 | |||||
Income (loss) from Discontinued Operations before income taxes | 0 | 5 | 22 | 72 | |||||
Gain (loss) on classification to held for sale, net (2) | [1] | 3 | 0 | (96) | 0 | ||||
Income tax expense (benefit) | 1 | 1 | (3) | 17 | |||||
Net income (loss) from Discontinued Operations | 2 | 4 | (71) | 55 | |||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||||
Depreciation and Amortization | 0 | 10 | |||||||
Amortization of intangible assets in Non-utility cost of revenues | 0 | 0 | |||||||
Write-down of natural gas inventory | 3 | 5 | |||||||
Capital expenditures | 1 | 12 | |||||||
Accounts payable related to capital expenditures | 4 | 1 | |||||||
Discontinued Operation, Continuing Involvement [Abstract] | |||||||||
Transportation revenue | 0 | 33 | 34 | [5] | 81 | ||||
Natural gas expense | 0 | 10 | 48 | [5] | 90 | ||||
CERC Corp [Member] | |||||||||
Discontinued Operation, Additional Disclosures [Abstract] | |||||||||
Cash proceeds from sale | 286 | 0 | |||||||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | |||||||||
Total current assets held for sale | 0 | 0 | 691 | ||||||
Total non-current assets held for sale | 0 | 0 | 213 | ||||||
Total current liabilities held for sale | 0 | 0 | 368 | ||||||
Total non-current liabilities held for sale | 0 | 0 | 27 | ||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||
Income tax expense (benefit) | 1 | 2 | (2) | 15 | |||||
Net income (loss) from Discontinued Operations | 2 | 3 | (66) | 57 | |||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||||
Depreciation and Amortization | 0 | 10 | |||||||
CERC Corp [Member] | Infrastructure Services Disposal Group [Member] | |||||||||
Discontinued Operation, Continuing Involvement [Abstract] | |||||||||
Pipeline construction and repair services capitalized | 0 | 3 | 0 | [3] | 12 | ||||
Pipeline construction and repair services charges | 0 | 1 | 1 | [3] | 2 | ||||
CERC Corp [Member] | Energy Services Disposal Group [Member] | |||||||||
Discontinued Operation, Additional Disclosures [Abstract] | |||||||||
Net deferred tax liabilities on sale recognized as deferred income tax benefit by CenterPoint Energy | 3 | 3 | |||||||
Current tax expense (benefit) of cash taxes payable upon sale | (1) | (4) | |||||||
Goodwill Impairment | 62 | ||||||||
Pre-tax gain on sale | (3) | (3) | |||||||
Outstanding obligation related to AMAs | 31 | 31 | 0 | ||||||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | |||||||||
Receivables, net | 445 | ||||||||
Accrued unbilled revenues | 8 | ||||||||
Natural gas inventory | 67 | ||||||||
Materials and supplies | 0 | ||||||||
Non-trading derivative assets | 136 | ||||||||
Other | 35 | ||||||||
Total current assets held for sale | 691 | ||||||||
Property, plant and equipment, net | 26 | ||||||||
Goodwill | 62 | ||||||||
Non-trading derivative assets | 58 | ||||||||
Other | 67 | ||||||||
Total non-current assets held for sale | 213 | ||||||||
Total assets held for sale | 904 | ||||||||
Accounts payable | 299 | ||||||||
Taxes accrued | 0 | ||||||||
Non-trading derivative liabilities | 44 | ||||||||
Other | 25 | ||||||||
Total current liabilities held for sale | 368 | ||||||||
Non-trading derivative liabilities | 14 | ||||||||
Benefit obligations | 4 | ||||||||
Other | 9 | ||||||||
Total non-current liabilities held for sale | 27 | ||||||||
Total liabilities held for sale | $ 395 | ||||||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||||||
Revenues | 0 | 740 | 1,167 | 2,834 | |||||
Non-utility cost of revenues | 0 | 715 | 1,108 | 2,701 | |||||
Operation and maintenance | 0 | 17 | 34 | 51 | |||||
Depreciation and amortization | 0 | 3 | 0 | 10 | |||||
Taxes other than income taxes | 0 | 0 | 3 | 0 | |||||
Total | 0 | 735 | 1,145 | 2,762 | |||||
Income (loss) from Discontinued Operations before income taxes | 0 | 5 | 22 | 72 | |||||
Gain (loss) on classification to held for sale, net (2) | [1] | 3 | 0 | (90) | 0 | ||||
Income tax expense (benefit) | 1 | 2 | (2) | 15 | |||||
Net income (loss) from Discontinued Operations | 2 | 3 | (66) | 57 | |||||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |||||||||
Depreciation and Amortization | 0 | 10 | |||||||
Amortization of intangible assets in Non-utility cost of revenues | 0 | 0 | |||||||
Write-down of natural gas inventory | 3 | 5 | |||||||
Capital expenditures | 1 | 12 | |||||||
Accounts payable related to capital expenditures | 4 | 1 | |||||||
Discontinued Operation, Continuing Involvement [Abstract] | |||||||||
Transportation revenue | 0 | 33 | 34 | [5] | 81 | ||||
Natural gas expense | $ 0 | $ 10 | $ 47 | [5] | $ 89 | ||||
[1] | Loss from classification to held for sale is inclusive of goodwill impairment, gains and losses recognized upon sale, and for CenterPoint Energy, its costs to sell. | ||||||||
[2] | Reflects February 1, 2019 to September 30, 2019 results only due to the Merger. | ||||||||
[3] | Represents charges for the period January 1, 2020 until the closing of the sale of the Infrastructure Services Disposal Group. | ||||||||
[4] | Represents charges for the period beginning February 1, 2019 due to the Merger. | ||||||||
[5] | Represents charges for the period January 1, 2020 until the closing of the sale of the Energy Services Disposal Group. |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts | $ 1,610 | $ 1,644 | $ 5,317 | $ 5,520 | ||
Other | [1] | 12 | 14 | 47 | 25 | |
Revenues | 1,622 | 1,658 | 5,364 | 5,545 | ||
Lease Income | 2 | 4 | 4 | 5 | ||
Houston Electric T&D [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | [2] | 828 | 859 | 2,186 | 2,313 | |
Indiana Electric Integrated [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 157 | 165 | 414 | 388 | ||
Natural Gas Distribution [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 560 | 541 | 2,519 | 2,629 | ||
Corporate and Other [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 77 | 93 | 245 | 215 | ||
Reportable Subsegments [Member] | Houston Electric T&D [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts | 828 | 861 | 2,188 | 2,319 | ||
Other | [1] | 0 | (2) | (2) | (6) | |
Revenues | 828 | 859 | 2,186 | 2,313 | ||
Reportable Subsegments [Member] | Indiana Electric Integrated [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts | 157 | 165 | 414 | 388 | [3] | |
Other | [1] | 0 | 0 | 0 | 0 | [3] |
Revenues | 157 | 165 | 414 | 388 | [3] | |
Reportable Subsegments [Member] | Natural Gas Distribution [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts | 550 | 527 | 2,475 | 2,603 | [3] | |
Other | [1] | 10 | 14 | 44 | 26 | [3] |
Revenues | 560 | 541 | 2,519 | 2,629 | [3] | |
Reportable Subsegments [Member] | Corporate and Other [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts | 75 | 91 | 240 | 210 | [3] | |
Other | [1] | 2 | 2 | 5 | 5 | [3] |
Revenues | 77 | 93 | 245 | 215 | [3] | |
Houston Electric [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 828 | 859 | 2,182 | 2,310 | ||
Houston Electric [Member] | Reportable Subsegments [Member] | Houston Electric T&D [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts | 828 | 861 | 2,188 | 2,319 | ||
Other | [4] | 0 | (2) | (6) | (9) | |
Revenues | 828 | 859 | 2,182 | 2,310 | ||
CERC Corp [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts | 417 | 408 | 1,873 | 2,129 | ||
Other | [5] | 9 | 12 | 47 | 29 | |
Revenues | 426 | 420 | 1,920 | 2,158 | ||
CERC Corp [Member] | Natural Gas Distribution [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 422 | 415 | 1,910 | 2,152 | ||
CERC Corp [Member] | Corporate and Other [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 4 | 5 | 10 | 6 | ||
CERC Corp [Member] | Reportable Subsegments [Member] | Natural Gas Distribution [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts | 414 | 403 | 1,865 | 2,123 | ||
Other | [5] | 8 | 12 | 45 | 29 | |
Revenues | 422 | 415 | 1,910 | 2,152 | ||
CERC Corp [Member] | Reportable Subsegments [Member] | Corporate and Other [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue from contracts | 3 | 5 | 8 | 6 | ||
Other | [5] | 1 | 0 | 2 | 0 | |
Revenues | $ 4 | $ 5 | $ 10 | $ 6 | ||
[1] | Primarily consists of income from ARPs, weather hedge gains (losses) and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Total lease income was $2 million and $4 million for the three months ended September 30, 2020 and 2019, respectively, and $4 million and $5 million for the nine months ended September 30, 2020 and 2019, respectively. | |||||
[2] | Houston Electric T&D’s revenues from major external customers are as follows (CenterPoint Energy and Houston Electric): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Affiliates of NRG $ 243 $ 231 $ 573 $ 547 Affiliates of Vistra Energy Corp. 128 83 301 196 | |||||
[3] | Reflects revenues from Vectren subsidiaries for the period from February 1, 2019 to September 30, 2019. | |||||
[4] | Primarily consists of income from ARPs, weather hedge gains (losses) and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Lease income was not significant for the three and nine months ended September 30, 2020 and 2019. | |||||
[5] | Primarily consists of income from ARPs, weather hedge gains (losses) and leases. ARPs are contracts between the utility and its regulators, not between the utility and a customer. The Registrants recognize ARP revenue as other revenues when the regulator-specified conditions for recognition have been met. Upon recovery of ARP revenue through incorporation in rates charged for utility service to customers, ARP revenue is reversed and recorded as revenue from contracts with customers. The recognition of ARP revenues and the reversal of ARP revenues upon recovery through rates charged for utility service may not occur in the same period. Lease income was not significant for the three and nine months ended September 30, 2020 and 2019. |
Revenue Recognition Summary of
Revenue Recognition Summary of Contract Assets and Liabilities (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Change in Accounts Receivable [Roll Forward] | |
Opening balance as of December 31, 2019 | $ 566 |
Closing balance as of September 30, 2020 | 568 |
Increase (Decrease) in Accounts Receivable on Contracts with Customers | 2 |
Change in Other Accrued Unbilled Revenues [Roll Forward] | |
Opening balance as of December 31, 2019 | 469 |
Closing balance as of September 30, 2020 | 285 |
Increase (Decrease) in Unbilled Receivables | (184) |
Change in Contract Asset [Roll Forward] | |
Opening balance as of December 31, 2019 | 6 |
Closing balance as of September 30, 2020 | 22 |
Increase (Decrease) in Contract with Customer, Asset | 16 |
Change in Contract Liability [Roll Forward] | |
Opening balance as of December 31, 2019 | 30 |
Closing balance as of September 30, 2020 | 20 |
Increase (Decrease) in Contract with Customer, Liability | (10) |
Contract with Customer, Liability, Revenue Recognized | 29 |
Houston Electric [Member] | |
Change in Accounts Receivable [Roll Forward] | |
Opening balance as of December 31, 2019 | 210 |
Closing balance as of September 30, 2020 | 321 |
Increase (Decrease) in Accounts Receivable on Contracts with Customers | 111 |
Change in Other Accrued Unbilled Revenues [Roll Forward] | |
Opening balance as of December 31, 2019 | 117 |
Closing balance as of September 30, 2020 | 124 |
Increase (Decrease) in Unbilled Receivables | 7 |
Change in Contract Liability [Roll Forward] | |
Opening balance as of December 31, 2019 | 3 |
Closing balance as of September 30, 2020 | 4 |
Increase (Decrease) in Contract with Customer, Liability | 1 |
Contract with Customer, Liability, Revenue Recognized | 3 |
CERC Corp [Member] | |
Change in Accounts Receivable [Roll Forward] | |
Opening balance as of December 31, 2019 | 222 |
Closing balance as of September 30, 2020 | 123 |
Increase (Decrease) in Accounts Receivable on Contracts with Customers | (99) |
Change in Other Accrued Unbilled Revenues [Roll Forward] | |
Opening balance as of December 31, 2019 | 249 |
Closing balance as of September 30, 2020 | 91 |
Increase (Decrease) in Unbilled Receivables | $ (158) |
Revenue Recognition Remaining P
Revenue Recognition Remaining Performance Obligations (Details) $ in Millions | Sep. 30, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized | $ 799 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized | $ 209 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue expected to be recognized | $ 590 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction, period |
Revenue Recognition Provision f
Revenue Recognition Provision for Doubtful Accounts (Details) - Accounting Standards Update 2016-13 [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Cumulative Effect on Retained Earnings | $ 5 |
Energy Services Disposal Group [Member] | |
Cumulative Effect on Retained Earnings | 2 |
CERC Corp [Member] | |
Cumulative Effect on Retained Earnings | $ 5 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Pension Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost (income) | $ 11 | $ 24 | $ 36 | $ 70 | |
Total contributions expected in current year | 84 | 84 | |||
Total contributions to the plans during the period | 79 | 84 | |||
Increase in defined benefit plan, plan assets | $ 115 | ||||
Percent increase (decrease) change in Defined Benefit Plan Assets | 5.70% | ||||
Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost (income) | 1 | 2 | $ 3 | 6 | |
Total contributions expected in current year | 11 | 11 | |||
Total contributions to the plans during the period | 2 | 8 | |||
Operation and maintenance expense [Member] | Pension Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost (1) | [1] | 10 | 10 | 32 | 30 |
Operation and maintenance expense [Member] | Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost (1) | [2] | 1 | 2 | 2 | 3 |
Other, net [Member] | Pension Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest cost (2) | [3] | 18 | 25 | 56 | 73 |
Expected return on plan assets (2) | [3] | (28) | (27) | (85) | (79) |
Amortization of prior service cost (2) | [3] | 0 | 2 | 0 | 6 |
Amortization of net loss (2) | [3] | 10 | 13 | 31 | 39 |
Settlement cost (2) (3) | [3],[4] | 1 | 1 | 2 | 2 |
Curtailment gain (2) (4) | [3],[5] | 0 | 0 | 0 | (1) |
Other, net [Member] | Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest cost (2) | [6] | 2 | 4 | 8 | 12 |
Expected return on plan assets (2) | [6] | (1) | (3) | (4) | (6) |
Amortization of prior service cost (2) | [6] | (1) | (1) | (3) | (3) |
Houston Electric [Member] | Pension Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total contributions expected in current year | 0 | 0 | |||
Total contributions to the plans during the period | 0 | 0 | |||
Houston Electric [Member] | Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost (income) | (1) | (1) | (3) | (2) | |
Total contributions expected in current year | 3 | 3 | |||
Total contributions to the plans during the period | 1 | 3 | |||
Houston Electric [Member] | Operation and maintenance expense [Member] | Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost (1) | [2] | 0 | 0 | 0 | 0 |
Houston Electric [Member] | Other, net [Member] | Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest cost (2) | [6] | 1 | 1 | 4 | 5 |
Expected return on plan assets (2) | [6] | (1) | (1) | (3) | (3) |
Amortization of prior service cost (2) | [6] | (1) | (1) | (4) | (4) |
CERC Corp [Member] | Pension Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total contributions expected in current year | 0 | 0 | |||
Total contributions to the plans during the period | 0 | 0 | |||
CERC Corp [Member] | Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost (income) | 1 | 2 | 3 | 4 | |
Total contributions expected in current year | 3 | 3 | |||
Total contributions to the plans during the period | 1 | 2 | |||
CERC Corp [Member] | Operation and maintenance expense [Member] | Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost (1) | [2] | 1 | 0 | 1 | 1 |
CERC Corp [Member] | Other, net [Member] | Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest cost (2) | [6] | 0 | 2 | 2 | 4 |
Expected return on plan assets (2) | [6] | (1) | 0 | (1) | (1) |
Amortization of prior service cost (2) | [6] | $ 1 | $ 0 | $ 1 | $ 0 |
[1] | Amounts presented in the table above are included in Operation and maintenance expense in CenterPoint Energy’s Condensed Statements of Consolidated Income, net of amounts capitalized and regulatory deferrals. | ||||
[2] | Amounts presented in the tables above are included in Operation and maintenance expense in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of amounts capitalized and regulatory deferrals. | ||||
[3] | Amounts presented in the table above are included in Other income (expense), net in CenterPoint Energy’s Condensed Statements of Consolidated Income, net of regulatory deferrals. | ||||
[4] | A one-time, non-cash settlement cost is required when the total lump sum distributions or other settlements of plan benefit obligations during a plan year exceed the service cost and interest cost components of the net periodic cost for that year. In each of the three and nine months ended September 30, 2020 and 2019, CenterPoint Energy recognized non-cash settlement costs due to lump sum settlement payments from Vectren pension plans. | ||||
[5] | A curtailment gain or loss is required when the expected future services of a significant number of employees are reduced or eliminated for the accrual of benefits. In the nine months ended September 30, 2019, CenterPoint Energy recognized a pension curtailment gain related to Vectren employees whose employment was terminated after the Merger closed. | ||||
[6] | Amounts presented in the tables above are included in Other income (expense), net in each of the Registrants’ respective Condensed Statements of Consolidated Income, net of regulatory deferrals. |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Millions | Jan. 23, 2020 | Apr. 05, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Apr. 13, 2020 | Dec. 31, 2019 |
Amount of allowed equity return not recognized in the period | $ 144 | |||||||
Amount Of Allowed Equity Return Recognized In Period | $ 10 | $ 14 | 24 | $ 38 | ||||
Rate case expense | 2,150 | 2,150 | $ 2,117 | |||||
Houston Electric [Member] | ||||||||
Amount of allowed equity return not recognized in the period | 144 | |||||||
Amount Of Allowed Equity Return Recognized In Period | 10 | $ 14 | 24 | $ 38 | ||||
Rate case expense | 873 | 873 | 915 | |||||
CERC Corp [Member] | ||||||||
Rate case expense | 206 | 206 | 191 | |||||
Incremental Uncollectible Receivables, Regulatory Asset | 14 | 14 | ||||||
Natural Gas Distribution [Member] | ||||||||
Incremental Uncollectible Receivables, Regulatory Asset | 16 | 16 | ||||||
CenterPoint Energy Houston Electric 2019 Rate Case [Member] | ||||||||
Requested revenue increase | $ 194 | |||||||
Houston electric stipulation and settlement agreement [Member] | ||||||||
Return on Equity | 9.40% | |||||||
Debt Capital Structure | 57.50% | |||||||
Equity Capital Structure | 42.50% | |||||||
Unprotected excess deferred income tax | $ 105 | |||||||
Houston electric stipulation and settlement agreement [Member] | Houston Electric [Member] | ||||||||
Requested revenue increase | $ 13 | |||||||
Rate case expense [Member] | Houston electric stipulation and settlement agreement [Member] | ||||||||
Rate case expense | $ 12 | |||||||
Public Utility Commission of Texas [Member] | ||||||||
COVID-19 ERP Regulatory Liability | 10 | 10 | ||||||
ERCOT Loan, COVID-19 ERP | $ 5 | |||||||
ERCOT Loan, COVID-19 ERP, Outstanding | 5 | 5 | ||||||
Public Utility Commission of Texas [Member] | Houston Electric [Member] | ||||||||
COVID-19 ERP Regulatory Liability | 10 | 10 | ||||||
ERCOT Loan, COVID-19 ERP | $ 5 | |||||||
ERCOT Loan, COVID-19 ERP, Outstanding | $ 5 | $ 5 |
Derivative Instruments Derivati
Derivative Instruments Derivatives and Hedging (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | ||
Derivatives, Fair Value [Line Items] | ||||||
Weather hedges term | 10 | |||||
Interest Rate Contract [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Realized losses deferred to other comprehensive income | [1] | $ 0 | $ 2 | $ 0 | $ 3 | |
Houston Electric [Member] | Interest Rate Contract [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Realized losses deferred to other comprehensive income | [1] | 0 | 0 | 0 | 1 | |
CERC Corp [Member] | Interest Rate Contract [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Realized losses deferred to other comprehensive income | [1] | 0 | $ 0 | 0 | $ 0 | |
Not Designated as Hedging Instrument, Economic Hedge [Member] | Interest Rate Contract [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Aggregate notional amount | [2] | $ 84 | $ 84 | $ 84 | ||
[1] | Gains and losses are reclassified from Accumulated other comprehensive income into income when the hedged transactions affect earnings. The reclassification amounts are included in Interest and other finance charges in each of the Registrants’ respective Statements of Consolidated Income. Over the next twelve months estimated amortization from Accumulated Comprehensive Income into income is expected to be immaterial. | |||||
[2] | Relates to interest rate derivative instruments at SIGECO. |
Derivative Instruments Summary
Derivative Instruments Summary of Derivative Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |||
Derivatives, Fair Value [Line Items] | |||||||
Derivative Assets Fair Value | $ 0 | $ 0 | $ 0 | ||||
Derivative Liabilities Fair Value | 949 | 949 | 925 | ||||
Gain (loss) on derivative instruments not designated as hedging instruments | (84) | $ (62) | (25) | $ (216) | |||
Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative Assets Fair Value | 0 | 0 | 0 | ||||
Derivative Liabilities Fair Value | 24 | 24 | 10 | ||||
Energy Related Derivative [Member] | Not Designated as Hedging Instrument [Member] | Current Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative Assets Fair Value | 0 | 0 | 0 | [1] | |||
Derivative Liabilities Fair Value | [1] | 1 | 1 | 7 | |||
Energy Related Derivative [Member] | Not Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative Assets Fair Value | 0 | 0 | 0 | [1] | |||
Derivative Liabilities Fair Value | [1] | 6 | 6 | 15 | |||
IDS Derivative [Member] | Not Designated as Hedging Instrument [Member] | Current Liabilities [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative Assets Fair Value | 0 | 0 | 0 | ||||
Derivative Liabilities Fair Value | [2] | 918 | 918 | $ 893 | |||
Gains (Losses) in Other Income (Expense) [Member] | IDS Derivative [Member] | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Gain (loss) on derivative instruments not designated as hedging instruments | $ (84) | $ (62) | $ (25) | $ (216) | |||
[1] | Natural gas contracts are subject to master netting arrangements. This netting applies to all undisputed amounts due or past due. However, the mark-to-market fair value of each natural gas contract is in a liability position with no offsetting amounts. (2) Derivative component of the ZENS obligation that represents the ZENS holder’s option to receive the appreciated value of the reference shares at maturity. See Note 11 for further information. | ||||||
[2] | Derivative component of the ZENS obligation that represents the ZENS holder’s option to receive the appreciated value of the reference shares at maturity. See Note 11 for further information. |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | ||
Assets | |||||||
Assets, Fair Value Disclosure | $ 882 | $ 882 | $ 874 | ||||
Liabilities | |||||||
Financial Liabilities Fair Value Disclosure | 949 | 949 | 925 | ||||
Goodwill, Impairment Loss | 0 | $ 0 | 185 | $ 0 | |||
Carrying Amount [Member] | |||||||
Liabilities | |||||||
Long-term Debt, Fair Value | [1] | 13,268 | 13,268 | 15,093 | |||
Fair Value [Member] | |||||||
Liabilities | |||||||
Long-term Debt, Fair Value | [1] | 14,982 | 14,982 | 16,067 | |||
Fair Value, Inputs, Level 1 [Member] | |||||||
Assets | |||||||
Assets, Fair Value Disclosure | 882 | 882 | 874 | ||||
Liabilities | |||||||
Financial Liabilities Fair Value Disclosure | 0 | 0 | 0 | ||||
Fair Value, Inputs, Level 2 [Member] | |||||||
Assets | |||||||
Assets, Fair Value Disclosure | 0 | 0 | 0 | ||||
Liabilities | |||||||
Financial Liabilities Fair Value Disclosure | 949 | 949 | 925 | ||||
Fair Value, Inputs, Level 3 [Member] | |||||||
Assets | |||||||
Assets, Fair Value Disclosure | 0 | 0 | 0 | ||||
Liabilities | |||||||
Financial Liabilities Fair Value Disclosure | 0 | 0 | 0 | ||||
Fair Value, Recurring [Member] | |||||||
Assets | |||||||
Corporate equities | 838 | 838 | 825 | ||||
Investments, including money market funds (1) | [2] | 44 | 44 | 49 | |||
Fair Value, Recurring [Member] | Interest Rate Contract [Member] | |||||||
Liabilities | |||||||
Derivative liabilities | 24 | 24 | 10 | ||||
Fair Value, Recurring [Member] | Energy Related Derivative [Member] | |||||||
Liabilities | |||||||
Derivative liabilities | 7 | 7 | 22 | ||||
Fair Value, Recurring [Member] | IDS Derivative [Member] | |||||||
Liabilities | |||||||
Derivative liabilities | 918 | 918 | 893 | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Assets | |||||||
Corporate equities | 838 | 838 | 825 | ||||
Investments, including money market funds (1) | [2] | 44 | 44 | 49 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Interest Rate Contract [Member] | |||||||
Liabilities | |||||||
Derivative liability | 0 | 0 | 0 | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Energy Related Derivative [Member] | |||||||
Liabilities | |||||||
Derivative liability | 0 | 0 | 0 | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | IDS Derivative [Member] | |||||||
Liabilities | |||||||
Derivative liability | 0 | 0 | 0 | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Assets | |||||||
Corporate equities | 0 | 0 | 0 | ||||
Investments, including money market funds (1) | [2] | 0 | 0 | 0 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Contract [Member] | |||||||
Liabilities | |||||||
Derivative liability | 24 | 24 | 10 | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Energy Related Derivative [Member] | |||||||
Liabilities | |||||||
Derivative liability | 7 | 7 | 22 | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | IDS Derivative [Member] | |||||||
Liabilities | |||||||
Derivative liability | 918 | 918 | 893 | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||
Assets | |||||||
Corporate equities | 0 | 0 | 0 | ||||
Investments, including money market funds (1) | [2] | 0 | 0 | 0 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Interest Rate Contract [Member] | |||||||
Liabilities | |||||||
Derivative liability | 0 | 0 | 0 | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Energy Related Derivative [Member] | |||||||
Liabilities | |||||||
Derivative liability | 0 | 0 | 0 | ||||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | IDS Derivative [Member] | |||||||
Liabilities | |||||||
Derivative liability | 0 | 0 | 0 | ||||
Houston Electric [Member] | |||||||
Assets | |||||||
Assets, Fair Value Disclosure | 27 | 27 | 32 | ||||
Houston Electric [Member] | Carrying Amount [Member] | |||||||
Liabilities | |||||||
Long-term Debt, Fair Value | [1] | 5,089 | 5,089 | 4,950 | |||
Houston Electric [Member] | Fair Value [Member] | |||||||
Liabilities | |||||||
Long-term Debt, Fair Value | [1] | 5,968 | 5,968 | 5,457 | |||
Houston Electric [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Assets | |||||||
Assets, Fair Value Disclosure | 27 | 27 | 32 | ||||
Houston Electric [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Assets | |||||||
Assets, Fair Value Disclosure | 0 | 0 | 0 | ||||
Houston Electric [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||
Assets | |||||||
Assets, Fair Value Disclosure | 0 | 0 | 0 | ||||
Houston Electric [Member] | Fair Value, Recurring [Member] | |||||||
Assets | |||||||
Investments, including money market funds (1) | [2] | 27 | 27 | 32 | |||
Houston Electric [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Assets | |||||||
Investments, including money market funds (1) | [2] | 27 | 27 | 32 | |||
Houston Electric [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Assets | |||||||
Investments, including money market funds (1) | [2] | 0 | 0 | 0 | |||
Houston Electric [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||
Assets | |||||||
Investments, including money market funds (1) | [2] | 0 | 0 | 0 | |||
CERC Corp [Member] | |||||||
Assets | |||||||
Assets, Fair Value Disclosure | 13 | 13 | 13 | ||||
CERC Corp [Member] | Carrying Amount [Member] | |||||||
Liabilities | |||||||
Long-term Debt, Fair Value | 2,582 | 2,582 | 2,546 | ||||
CERC Corp [Member] | Fair Value [Member] | |||||||
Liabilities | |||||||
Long-term Debt, Fair Value | 2,973 | 2,973 | 2,803 | ||||
CERC Corp [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Assets | |||||||
Assets, Fair Value Disclosure | 13 | 13 | 13 | ||||
CERC Corp [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Assets | |||||||
Assets, Fair Value Disclosure | 0 | 0 | 0 | ||||
CERC Corp [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||
Assets | |||||||
Assets, Fair Value Disclosure | 0 | 0 | 0 | ||||
CERC Corp [Member] | Fair Value, Recurring [Member] | |||||||
Assets | |||||||
Corporate equities | 2 | 2 | 2 | ||||
Investments, including money market funds (1) | [2] | 11 | 11 | 11 | |||
CERC Corp [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Assets | |||||||
Corporate equities | 2 | 2 | 2 | ||||
Investments, including money market funds (1) | [2] | 11 | 11 | 11 | |||
CERC Corp [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Assets | |||||||
Corporate equities | 0 | 0 | 0 | ||||
Investments, including money market funds (1) | [2] | 0 | 0 | 0 | |||
CERC Corp [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||
Assets | |||||||
Corporate equities | 0 | 0 | 0 | ||||
Investments, including money market funds (1) | [2] | 0 | 0 | $ 0 | |||
Infrastructure Services [Member] | |||||||
Liabilities | |||||||
Goodwill, Impairment Loss | 82 | ||||||
Fair Value Of Disposal Group | 864 | 864 | |||||
Energy Services [Member] | |||||||
Liabilities | |||||||
Goodwill, Impairment Loss | 62 | ||||||
Loss on assets held for sale | 0 | 31 | |||||
Fair Value Of Disposal Group | 402 | 402 | |||||
Energy Services [Member] | CERC Corp [Member] | |||||||
Liabilities | |||||||
Goodwill, Impairment Loss | 62 | ||||||
Enable Midstream Partners [Member] | |||||||
Liabilities | |||||||
Equity Method Investment, Other than Temporary Impairment | $ 0 | $ 0 | 1,541 | $ 0 | |||
Equity Method Investments, Fair Value Disclosure | $ 848 | ||||||
Indiana Electric Integrated [Member] | |||||||
Liabilities | |||||||
Goodwill, Impairment Loss | [3] | $ 185 | |||||
[1] | Includes Securitization Bonds debt. | ||||||
[2] | Amounts are included in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. | ||||||
[3] | CenterPoint Energy recognized a non-cash goodwill impairment charge as a result of the March 31, 2020 goodwill impairment test. |
Unconsolidated Affiliate (Cen_3
Unconsolidated Affiliate (CenterPoint Energy and CERC) (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 01, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Enable Units [Abstract] | |||||||||||
Preferred units – unconsolidated affiliate | $ 363 | $ 363 | $ 363 | ||||||||
Percentage of sales that trigger right of first refusal | 5.00% | ||||||||||
Enable Distributions [Abstract] | |||||||||||
Distributions from unconsolidated affiliates | $ 109 | $ 226 | |||||||||
Total distributions received from Enable | 48 | $ 86 | 182 | 253 | |||||||
Income Statement [Abstract] | |||||||||||
Operating revenues | 1,622 | 1,658 | 5,364 | 5,545 | |||||||
Depreciation and amortization | 306 | 316 | 885 | 938 | |||||||
Operating income | 302 | 357 | 754 | 797 | |||||||
Net income attributable to Enable common units | 69 | 241 | (1,100) | 546 | |||||||
Equity in earnings of unconsolidated affiliate, net | (67) | 77 | (1,499) | 213 | |||||||
Assets [Abstract] | |||||||||||
Current assets | 2,785 | 2,785 | 3,937 | ||||||||
Liabilities and Equity [Abstract] | |||||||||||
Current liabilities | 3,830 | 3,830 | 3,978 | ||||||||
Enable partners’ equity | 8,388 | 8,346 | 8,388 | 8,346 | 8,359 | ||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | |||||||||||
Investment in unconsolidated affiliates | 749 | 749 | 2,408 | ||||||||
Common Units [Member] | |||||||||||
Liabilities and Equity [Abstract] | |||||||||||
Enable partners’ equity | 5 | 5 | 5 | 5 | $ 5 | 5 | $ 5 | $ 5 | |||
Series A Preferred Units [Member] | |||||||||||
Liabilities and Equity [Abstract] | |||||||||||
Enable partners’ equity | 2,456 | 1,740 | 2,456 | 1,740 | 2,441 | 1,740 | 1,740 | 1,740 | |||
CERC Corp [Member] | |||||||||||
Transactions with Enable [Abstract] | |||||||||||
Natural gas expenses, including transportation and storage costs | [1] | 23 | 0 | 23 | 0 | ||||||
Income Statement [Abstract] | |||||||||||
Operating revenues | 426 | 420 | 1,920 | 2,158 | |||||||
Depreciation and amortization | 78 | 72 | 226 | 218 | |||||||
Operating income | 14 | 18 | 256 | 205 | |||||||
Assets [Abstract] | |||||||||||
Current assets | 568 | 568 | 1,489 | ||||||||
Liabilities and Equity [Abstract] | |||||||||||
Current liabilities | 606 | 606 | 1,111 | ||||||||
Enable partners’ equity | 2,345 | 2,483 | 2,345 | 2,483 | 2,641 | ||||||
CERC Corp [Member] | Common Units [Member] | |||||||||||
Liabilities and Equity [Abstract] | |||||||||||
Enable partners’ equity | $ 0 | 0 | $ 0 | 0 | $ 0 | 0 | $ 0 | $ 0 | |||
OGE [Member] | |||||||||||
Enable Units [Abstract] | |||||||||||
Percentage of sales that trigger right of first refusal | 5.00% | ||||||||||
Enable Midstream Partners [Member] | |||||||||||
Enable Partnership Interest [Abstract] | |||||||||||
Ownership percentage of equity method investment | [2] | 53.70% | 53.70% | ||||||||
Limited partner ownership interest | [2] | 100.00% | |||||||||
Enable Units [Abstract] | |||||||||||
Equity Method Investments, Fair Value Disclosure | $ 848 | ||||||||||
Maximum incentive distribution right | 50.00% | ||||||||||
Income Statement [Abstract] | |||||||||||
Operating revenues | $ 596 | 699 | $ 1,759 | 2,229 | |||||||
Cost of sales, excluding depreciation and amortization | 250 | 263 | 653 | 958 | |||||||
Depreciation and amortization | 105 | 108 | 314 | 323 | |||||||
Goodwill and Intangible Asset Impairment | 0 | 0 | 28 | 0 | |||||||
Operating income | 100 | 175 | 326 | 507 | |||||||
Net income attributable to Enable common units | (173) | 123 | (35) | 351 | |||||||
CenterPoint Energy’s interest | (93) | 66 | (19) | 189 | |||||||
Basis difference amortization (1) | [3] | 26 | 11 | 62 | 35 | ||||||
Loss on dilution, net of proportional basis difference recognition | 0 | 0 | (1) | (11) | |||||||
Impairment of CenterPoint Energy’s equity method investment in Enable | 0 | 0 | (1,541) | 0 | |||||||
Equity in earnings of unconsolidated affiliate, net | (67) | 77 | (1,499) | 213 | |||||||
Equity Method Investment's Impairment on an equity method investment | 225 | ||||||||||
Assets [Abstract] | |||||||||||
Current assets | 373 | 373 | 389 | ||||||||
Non-current assets | 11,402 | 11,402 | 11,877 | ||||||||
Liabilities and Equity [Abstract] | |||||||||||
Current liabilities | 644 | 644 | 780 | ||||||||
Non-current liabilities | 4,055 | 4,055 | 4,077 | ||||||||
Non-controlling interest | 26 | 26 | 37 | ||||||||
Preferred equity | 362 | 362 | 362 | ||||||||
Accumulated other comprehensive loss | (7) | (7) | (3) | ||||||||
Enable partners’ equity | 6,695 | 6,695 | 7,013 | ||||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | |||||||||||
CenterPoint Energy’s ownership interest in Enable partners’ equity | 3,592 | 3,592 | 3,767 | ||||||||
CenterPoint Energy’s basis difference (1) | [4] | (2,844) | (2,844) | (1,361) | |||||||
Investment in unconsolidated affiliates | 748 | 748 | 2,406 | ||||||||
Enable Midstream Partners [Member] | Common Units [Member] | |||||||||||
Enable Distributions [Abstract] | |||||||||||
Distributions from unconsolidated affiliates | [5] | $ 39 | $ 77 | $ 155 | $ 226 | ||||||
Distribution per share of common units | [5] | $ 0.16525 | $ 0.3305 | $ 0.6610 | $ 0.9665 | ||||||
Enable Midstream Partners [Member] | Series A Preferred Units [Member] | |||||||||||
Enable Distributions [Abstract] | |||||||||||
Distributions received from Enable cost method investment | $ 9 | $ 9 | $ 27 | $ 27 | |||||||
Distribution per share of Series A preferred units | $ 0.62500 | $ 0.6250 | $ 1.8750 | $ 1.8750 | |||||||
Enable Midstream Partners [Member] | OGE [Member] | |||||||||||
Enable Partnership Interest [Abstract] | |||||||||||
Limited partner ownership interest | [2] | 25.50% | |||||||||
Enable Midstream Partners [Member] | Public unitholders [Member] | |||||||||||
Enable Partnership Interest [Abstract] | |||||||||||
Limited partner ownership interest | [2] | 20.80% | |||||||||
Proliance Holdings LLC [Member] | |||||||||||
Income Statement [Abstract] | |||||||||||
Equity in earnings of unconsolidated affiliate, net | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | |||||||||||
Investment in unconsolidated affiliates | $ 1 | $ 1 | 2 | ||||||||
Maximum [Member] | Enable Midstream Partners [Member] | |||||||||||
Enable Units [Abstract] | |||||||||||
Incentive distribution per unit | $ 0.330625 | ||||||||||
Common Units [Member] | Enable Midstream Partners [Member] | |||||||||||
Enable Units [Abstract] | |||||||||||
Limited partner interest units held | [6] | 233,856,623 | 233,856,623 | ||||||||
Limited partner interest units held | [6] | 435,468,668 | 435,468,668 | ||||||||
Common Units [Member] | Enable Midstream Partners [Member] | OGE [Member] | |||||||||||
Enable Units [Abstract] | |||||||||||
Limited partner interest units held | [6] | 110,982,805 | 110,982,805 | ||||||||
Preferred Units Held | [7] | 0 | 0 | ||||||||
Common Units [Member] | Enable Midstream Partners [Member] | Public unitholders [Member] | |||||||||||
Enable Units [Abstract] | |||||||||||
Limited partner interest units held | [6] | 90,629,240 | 90,629,240 | ||||||||
Preferred Units Held | [7] | 0 | 0 | ||||||||
Series A Preferred Units [Member] | Enable Midstream Partners [Member] | |||||||||||
Enable Units [Abstract] | |||||||||||
Preferred Units Held | [7] | 14,520,000 | 14,520,000 | ||||||||
Enable Midstream Partners [Member] | |||||||||||
Transactions with Enable [Abstract] | |||||||||||
Accounts receivable for amounts billed for services provided to Enable | $ 1 | $ 1 | 2 | ||||||||
Enable Midstream Partners [Member] | CERC Corp [Member] | |||||||||||
Transactions with Enable [Abstract] | |||||||||||
Accounts receivable for amounts billed for services provided to Enable | 1 | 1 | 2 | ||||||||
Natural Gas Expenses [Member] | Enable Midstream Partners [Member] | |||||||||||
Transactions with Enable [Abstract] | |||||||||||
Natural gas expenses, including transportation and storage costs | 17 | 17 | 61 | 62 | |||||||
Accounts payable for natural gas purchases from Enable | 6 | 6 | 9 | ||||||||
Natural Gas Expenses [Member] | Enable Midstream Partners [Member] | CERC Corp [Member] | |||||||||||
Transactions with Enable [Abstract] | |||||||||||
Natural gas expenses, including transportation and storage costs | 17 | $ 17 | 61 | $ 62 | |||||||
Accounts payable for natural gas purchases from Enable | $ 6 | $ 6 | $ 9 | ||||||||
Enable GP, LLC [Member] | CenterPoint Energy [Member] | |||||||||||
Enable Units [Abstract] | |||||||||||
Management rights ownership percentage | [8],[9] | 50.00% | |||||||||
Incentive Distribution Right, Percentage | [9],[10] | 40.00% | |||||||||
Enable GP, LLC [Member] | OGE [Member] | |||||||||||
Enable Units [Abstract] | |||||||||||
Management rights ownership percentage | [8] | 50.00% | |||||||||
Incentive Distribution Right, Percentage | [10] | 60.00% | |||||||||
Common Units [Member] | Enable Midstream Partners [Member] | |||||||||||
Enable Distributions [Abstract] | |||||||||||
Percentage Reduction of Dividend or Distribution Amount | 50.00% | ||||||||||
Previous Dividend or Distribution [Member] | Common Units [Member] | Enable Midstream Partners [Member] | |||||||||||
Enable Distributions [Abstract] | |||||||||||
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $ 0.3305 | ||||||||||
Revised Dividend or Distribution [Member] | Common Units [Member] | Enable Midstream Partners [Member] | |||||||||||
Enable Distributions [Abstract] | |||||||||||
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $ 0.16525 | ||||||||||
[1] | Property, plant and equipment purchased from CenterPoint Energy at its net carrying value on the date of purchase. | ||||||||||
[2] | Excludes the Enable Series A Preferred Units owned by CenterPoint Energy. | ||||||||||
[3] | Equity in earnings of unconsolidated affiliate includes CenterPoint Energy’s share of Enable earnings adjusted for the amortization of the basis difference of CenterPoint Energy’s original investment in Enable and its underlying equity in net assets of Enable. The basis difference is being amortized through the year 2048. | ||||||||||
[4] | Includes the impairment of CenterPoint Energy’s equity method investment in Enable of $1,541 million recorded during the nine months ended September 30, 2020. The basis difference is being amortized through the year 2048. | ||||||||||
[5] | On April 1, 2020, Enable announced a 50% reduction in its quarterly distribution per common unit from $0.3305 to $0.16525. | ||||||||||
[6] | Held indirectly through CNP Midstream by CenterPoint Energy. | ||||||||||
[7] | The carrying amount of the Enable Series A Preferred Units, reflected as Preferred units - unconsolidated affiliate on CenterPoint Energy’s Condensed Consolidated Balance Sheets, was $363 million as of both September 30, 2020 and December 31, 2019. No impairment charges or adjustment due to observable price changes were required or recorded during the current or prior reporting periods. | ||||||||||
[8] | Enable is controlled jointly by CenterPoint Energy and OGE. Sale of CenterPoint Energy’s or OGE’s ownership interests in Enable GP to a third party is subject to mutual rights of first offer and first refusal, and CenterPoint Energy is not permitted to dispose of less than all of its interest in Enable GP. | ||||||||||
[9] | Held indirectly through CNP Midstream. | ||||||||||
[10] | If cash distributions to Enable’s unitholders exceed $0.330625 per common unit in any quarter, Enable GP will receive increasing percentages or incentive distributions rights, up to 50%, of the cash Enable distributes in excess of that amount. In certain circumstances Enable GP will have the right to reset the minimum quarterly distribution and the target distribution levels at which the incentive distributions receive increasing percentages to higher levels based on Enable’s cash distributions at the time of the exercise of this reset election. To date, no incentive distributions have been made. |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles (CenterPoint Energy and CERC) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | ||
Goodwill [Line Items] | ||||||
Goodwill | $ 4,697 | $ 4,697 | $ 4,882 | |||
Goodwill, Impairment Loss | 0 | $ 0 | 185 | $ 0 | ||
Finite-Live Intangible Assets [Abstract] | ||||||
Intangible assets gross carrying amount | 68 | 68 | 68 | |||
Intangible assets accumulated amortization | (16) | (16) | (10) | |||
Net intangible assets | 52 | 52 | 58 | |||
Amortization of Intangible Assets | 1 | 19 | ||||
Finite-Lived Intangible Assets Amortization Expense Maturity Schedule [Abstract] | ||||||
Remaining three months of 2020 | [1] | 2 | 2 | |||
2021 | [1] | 6 | 6 | |||
2022 | [1] | 6 | 6 | |||
2023 | [1] | 6 | 6 | |||
2024 | [1] | 5 | 5 | |||
2025 | [1] | 5 | 5 | |||
Indiana Electric Integrated [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill | [2] | 936 | 936 | 1,121 | ||
Goodwill, Impairment Loss | [2] | 185 | ||||
Fair value of goodwill | 936 | 936 | ||||
Natural Gas Distribution [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 3,312 | 3,312 | 3,312 | |||
Goodwill, Impairment Loss | 0 | |||||
Corporate and Other [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 449 | 449 | 449 | |||
Goodwill, Impairment Loss | 0 | |||||
Customer Relationships [Member] | ||||||
Finite-Live Intangible Assets [Abstract] | ||||||
Intangible assets gross carrying amount | 33 | 33 | 33 | |||
Intangible assets accumulated amortization | (7) | (7) | (4) | |||
Net intangible assets | 26 | 26 | 29 | |||
Trade Names [Member] | ||||||
Finite-Live Intangible Assets [Abstract] | ||||||
Intangible assets gross carrying amount | 16 | 16 | 16 | |||
Intangible assets accumulated amortization | (3) | (3) | (1) | |||
Net intangible assets | 13 | 13 | 15 | |||
Construction Backlog [Member] | ||||||
Finite-Live Intangible Assets [Abstract] | ||||||
Intangible assets gross carrying amount | [3] | 5 | 5 | 5 | ||
Intangible assets accumulated amortization | [3] | (4) | (4) | (4) | ||
Net intangible assets | [3] | 1 | 1 | 1 | ||
Operation and maintenance agreements [Member] | ||||||
Finite-Live Intangible Assets [Abstract] | ||||||
Intangible assets gross carrying amount | [3] | 12 | 12 | 12 | ||
Intangible assets accumulated amortization | [3] | (1) | (1) | 0 | ||
Net intangible assets | [3] | 11 | 11 | 12 | ||
Other [Member] | ||||||
Finite-Live Intangible Assets [Abstract] | ||||||
Intangible assets gross carrying amount | 2 | 2 | 2 | |||
Intangible assets accumulated amortization | (1) | (1) | (1) | |||
Net intangible assets | 1 | 1 | 1 | |||
CERC Corp [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 757 | 757 | 757 | |||
CERC Corp [Member] | Natural Gas Distribution [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 746 | 746 | 746 | |||
CERC Corp [Member] | Corporate and Other [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 11 | 11 | $ 11 | |||
Depreciation and amortization expense [Member] | ||||||
Finite-Live Intangible Assets [Abstract] | ||||||
Amortization of Intangible Assets | [4] | 2 | 1 | 5 | 2 | |
Non-utility cost of revenues [Member] | ||||||
Finite-Live Intangible Assets [Abstract] | ||||||
Amortization of Intangible Assets | [4] | $ 0 | $ 1 | 1 | $ 4 | |
Continuing Operations [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, Impairment Loss | $ 185 | |||||
[1] | Assets held for sale are not amortized. The table reflects amortization on continuing operations. For further information on discontinued operations, see Note 3. | |||||
[2] | CenterPoint Energy recognized a non-cash goodwill impairment charge as a result of the March 31, 2020 goodwill impairment test. | |||||
[3] | Amortization expense related to the operation and maintenance agreements and construction backlog is included in Non-utility cost of revenues, including natural gas on CenterPoint Energy’s Condensed Statements of Consolidated Income. | |||||
[4] | Assets held for sale are not amortized. The table reflects amortization on continuing operations. For further information on discontinued operations, see Note 3. |
Indexed Debt Securities (ZENS_3
Indexed Debt Securities (ZENS) and Securities Related to ZENS (CenterPoint Energy) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Target Annual Yield On Reference Shares | 2.309% | |
Subordinated Debt ZENS [Member] | ||
Principal amount of debt issued | $ 1,000 | |
Outstanding debt balance | $ 828 | |
Subordinated note cash exchangeable percentage of fair value | 95.00% | |
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | |
Contingent principal amount outstanding | $ 61 | |
AT&T Common [Member] | ||
Balance of investment owned (in shares) | 10,212,945 | 10,212,945 |
AT&T Common [Member] | Subordinated Debt ZENS [Member] | ||
Number of shares referenced in exchangeable subordinated note | 0.7185 | 0.7185 |
Charter Common [Member] | ||
Balance of investment owned (in shares) | 872,503 | 872,503 |
Charter Common [Member] | Subordinated Debt ZENS [Member] | ||
Number of shares referenced in exchangeable subordinated note | 0.061382 | 0.061382 |
Long-term Debt (Details)
Long-term Debt (Details) $ in Millions | Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($)day | Oct. 01, 2020USD ($) | Jun. 02, 2020USD ($) | Dec. 31, 2019USD ($) | |
Line of Credit Facility [Abstract] | ||||||
Size of credit facility | $ 4,900 | $ 4,900 | ||||
Number of days until commercial paper maturity | day | 60 | |||||
Parent Company [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Size of credit facility | 3,300 | $ 3,300 | ||||
VUHI [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Size of credit facility | [1] | 400 | 400 | |||
Credit facility swing line sublimit | 10 | 10 | ||||
Letters of credit swing line sublimit | 20 | 20 | ||||
Houston Electric [Member] | ||||||
Debt Instrument [Line Items] | ||||||
General mortgage bonds used as collateral | 68 | 68 | $ 68 | |||
Line of Credit Facility [Abstract] | ||||||
Size of credit facility | 300 | 300 | ||||
CERC Corp [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Size of credit facility | 900 | 900 | ||||
Revolving Credit Facility [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term line of credit | 0 | 0 | 0 | |||
Revolving Credit Facility [Member] | Parent Company [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term line of credit | [2] | 0 | 0 | 0 | ||
Revolving Credit Facility [Member] | VUHI [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term line of credit | [3] | 0 | 0 | 0 | ||
Revolving Credit Facility [Member] | Houston Electric [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term line of credit | 0 | 0 | 0 | |||
Revolving Credit Facility [Member] | CERC Corp [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term line of credit | $ 0 | $ 0 | 0 | |||
Line of Credit [Member] | Parent Company [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Ratio of indebtedness to net capital | [4] | 0.534 | 0.534 | |||
Percentage on limitation of debt to total capitalization under covenant amended (in hundredths) | 70.00% | |||||
System restoration costs threshold for increase in permitted debt to EBITDA covenant ratio | $ 100 | |||||
Consecutive period for system restoration costs to exceed $100 million (in months) | 12 | |||||
Percentage on limitation of debt to total capitalization under covenant (in hundredths) | [5] | 65.00% | ||||
Line of Credit [Member] | Parent Company [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Basis spread on LIBOR | [6] | 1.50% | ||||
Line of Credit [Member] | VUHI [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Ratio of indebtedness to net capital | [1],[4] | 0.525 | 0.525 | |||
Percentage on limitation of debt to total capitalization under covenant (in hundredths) | [1] | 65.00% | ||||
Line of Credit [Member] | VUHI [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Basis spread on LIBOR | [1],[6] | 1.125% | ||||
Line of Credit [Member] | Houston Electric [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Ratio of indebtedness to net capital | [4] | 0.532 | 0.532 | |||
Percentage on limitation of debt to total capitalization under covenant (in hundredths) | [5] | 65.00% | ||||
Line of Credit [Member] | Houston Electric [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Basis spread on LIBOR | [6] | 1.25% | ||||
Line of Credit [Member] | CERC Corp [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Ratio of indebtedness to net capital | [4] | 0.527 | 0.527 | |||
Percentage on limitation of debt to total capitalization under covenant (in hundredths) | 65.00% | |||||
Line of Credit [Member] | CERC Corp [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Basis spread on LIBOR | [6] | 1.125% | ||||
Letter of Credit [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term line of credit | $ 8 | $ 8 | 7 | |||
Letter of Credit [Member] | Parent Company [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term line of credit | [2] | 8 | 8 | 6 | ||
Letter of Credit [Member] | VUHI [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term line of credit | [3] | 0 | 0 | 0 | ||
Letter of Credit [Member] | SIGECO [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term line of credit | 7 | 7 | ||||
Letter of Credit [Member] | Houston Electric [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term line of credit | 0 | 0 | 0 | |||
Letter of Credit [Member] | CERC Corp [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term line of credit | 0 | 0 | 1 | |||
Commercial Paper [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term line of credit | 1,221 | 1,221 | 2,278 | |||
Commercial Paper [Member] | Parent Company [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term line of credit | [2] | $ 638 | $ 638 | $ 1,633 | ||
Weighted average interest rate of debt | [2] | 0.19% | 0.19% | 1.95% | ||
Commercial Paper [Member] | VUHI [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term line of credit | [3] | $ 176 | $ 176 | $ 268 | ||
Weighted average interest rate of debt | [3] | 0.19% | 0.19% | 2.08% | ||
Commercial Paper [Member] | Houston Electric [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term line of credit | $ 0 | $ 0 | $ 0 | |||
Weighted average interest rate of debt | 0.00% | 0.00% | 0.00% | |||
Commercial Paper [Member] | CERC Corp [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term line of credit | $ 407 | $ 407 | $ 377 | |||
Weighted average interest rate of debt | 0.17% | 0.17% | 1.94% | |||
CERC Senior notes 4.50% due 2021 [Member] | CERC Corp [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | $ 593 | $ 593 | ||||
Line of Credit Facility [Abstract] | ||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||
General Mortgage Bonds Due 2050 [Member] | Houston Electric [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | $ 300 | |||||
Interest rate of debt | 2.90% | |||||
Long-term Debt | $ 296 | |||||
Variable rate term loan [Member] | VCC [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | $ 200 | 200 | ||||
Variable rate term loan [Member] | CenterPoint Energy [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | $ 1,000 | 1,000 | ||||
Repayments of Debt | 300 | |||||
Variable rate term loan [Member] | VUHI [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of Debt | 300 | |||||
Variable rate term loan [Member] | VCC [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of Debt | $ 200 | |||||
Senior Notes [Member] | VUHI [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate of debt | 6.28% | 6.28% | ||||
Repayments of Debt | $ 100 | |||||
Senior Notes [Member] | CERC Senior notes 4.50% due 2021 [Member] | CERC Corp [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate of debt | 4.50% | 4.50% | ||||
First Mortgage [Member] | SIGECO [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | $ 38 | $ 38 | ||||
First Mortgage [Member] | Environmental Improvement Revenue Bonds, Mount Vernon, 0.875%, Series 2015 [Member] | SIGECO [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | 23 | 23 | ||||
First Mortgage [Member] | Environmental Improvement Revenue Bonds, Warrick County, 0.875%, Series 2015 [Member] | SIGECO [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | $ 15 | $ 15 | ||||
First Mortgage [Member] | SIGECO 2020 First Mortgage Bonds Remarketing, 0.875%, Series 2015 [Member] | SIGECO [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate of debt | 0.875% | 0.875% | ||||
Debt Instrument, Initial Interest Rate, Stated Percentage | 2.375% | 2.375% | ||||
Subsequent Event [Member] | Senior Notes [Member] | CERC Senior notes 1.75% due 2030 [Member] | CERC Corp [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt issued | $ 500 | |||||
Interest rate of debt | 1.75% | |||||
Long-term Debt | $ 495 | |||||
Subsequent Event [Member] | Senior Notes [Member] | CERC Senior notes 4.50% due 2021 [Member] | CERC Corp [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate of debt | 4.50% | |||||
Maximum [Member] | Letter of Credit [Member] | Vectren [Member] | ||||||
Line of Credit Facility [Abstract] | ||||||
Long-term line of credit | $ 50 | $ 50 | ||||
[1] | This credit facility was issued by VUHI, is guaranteed by SIGECO, Indiana Gas and VEDO and includes a $10 million swing line sublimit and a $20 million letter of credit sublimit. This credit facility backstops VUHI’s commercial paper program. | |||||
[2] | CenterPoint Energy’s outstanding commercial paper generally has maturities of 60 days or less. | |||||
[3] | This credit facility was issued by VUHI and is guaranteed by SIGECO, Indiana Gas and VEDO. | |||||
[4] | As defined in the revolving credit facility agreements, excluding Securitization Bonds. | |||||
[5] | For CenterPoint Energy and Houston Electric, the financial covenant limit will temporarily increase from 65% to 70% if Houston Electric experiences damage from a natural disaster in its service territory and CenterPoint Energy certifies to the administrative agent that Houston Electric has incurred system restoration costs reasonably likely to exceed $100 million in a consecutive 12-month period, all or part of which Houston Electric intends to seek to recover through securitization financing. Such temporary increase in the financial covenant would be in effect from the date CenterPoint Energy delivers its certification until the earliest to occur of (i) the completion of the securitization financing, (ii) the first anniversary of CenterPoint Energy’s certification or (iii) the revocation of such certification. | |||||
[6] | Based on current credit ratings. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Net uncertain tax liability | $ 9 | $ 9 | |||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $ 5 | ||||
Houston Electric [Member] | |||||
Effective income tax rate | [1] | 14.00% | 18.00% | 15.00% | 18.00% |
Continuing Operations [Member] | |||||
Effective income tax rate | [2],[3] | (9.00%) | 15.00% | 29.00% | 12.00% |
Continuing Operations [Member] | CERC Corp [Member] | |||||
Effective income tax rate | [4],[5] | 60.00% | 23.00% | 13.00% | 9.00% |
Discontinued Operations [Member] | |||||
Effective income tax rate | [6],[7] | 0.00% | 46.00% | (13.00%) | 30.00% |
Discontinued Operations [Member] | CERC Corp [Member] | |||||
Effective income tax rate | [8],[9] | 33.00% | 40.00% | 3.00% | 21.00% |
Coronavirus Aid Relief And Economic Security Act [Member] | |||||
Recognized tax benefit from changes in tax laws, CARES act | $ 37 | ||||
[1] | Houston Electric’s lower effective tax rate for the three and nine months ended September 30, 2020 compared to the same periods for 2019 was primarily due to an increase in the amount of amortization of the net regulatory EDIT liability. | ||||
[2] | CenterPoint Energy’s higher effective tax rate on the loss from continuing operations for the nine months ended September 30, 2020 compared to the income from continuing operations for the nine months ended September 30, 2019 was primarily due to lower earnings from the impairment of CenterPoint Energy’s investment in Enable. Other effective tax rate drivers include the tax benefit for the NOL carryback claims under the CARES Act, which was partially offset by the non-deductible goodwill impairment at the Indiana Electric Integrated reporting unit. | ||||
[3] | CenterPoint Energy’s lower effective tax rate on income from continuing operations for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 was primarily driven by the recognition of additional tax benefit for increased NOL carryback claims under the CARES Act and the effects of the lower book earnings on other rate drivers in the three months ended September 30, 2020. | ||||
[4] | CERC’s higher effective tax rate on income from continuing operations for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 was driven by the absence of state deferred tax benefits as a result of certain state tax law changes and the release of a valuation allowance on certain state NOLs that were reported in the nine months ended September 30, 2019. These were partially offset by an increase in the amount of amortization of the net regulatory EDIT liability and a larger return-to-accrual tax benefit recognized in the nine months ended September 30, 2020. | ||||
[5] | CERC’s higher effective tax rate on the loss from continuing operations for the three months ended September 30, 2020 compared to the three months ended September 30, 2019 was driven by an increase in the amount of amortization of the net regulatory EDIT liability and a larger return-to-accrual tax benefit recognized in the three months ended September 30, 2020. These were partially offset by the absence of state deferred tax benefits as a result of certain state tax law changes and the release of a valuation allowance on certain state NOLs that were reported in the three months ended September 30, 2019. | ||||
[6] | CenterPoint Energy’s lower effective tax rate on the loss from discontinued operations for the nine months ended September 30, 2020 compared to the income from discontinued operations for the nine months ended September 30, 2019 was primarily due to the tax impacts from the sale of the Infrastructure Services Disposal Group on April 9, 2020 and the sale of the Energy Services Disposal Group on June 1, 2020, the effect of which was compounded by lower book earnings in the nine months ended September 30, 2020. See Note 3 for further information. | ||||
[7] | CenterPoint Energy’s lower effective tax rate on the loss from discontinued operations for the three months ended September 30, 2020 compared to the income from discontinued operations for the three months ended September 30, 2019 was primarily due to lower book earnings in the three months ended September 30, 2020. | ||||
[8] | CERC’s lower effective tax rate on income from discontinued operations for the three months ended September 30, 2020 compared to the income from discontinued operations for the three months ended September 30, 2019 was primarily due to lower book earnings in the three months ended September 30, 2020. | ||||
[9] | CERC’s lower effective tax rate on the loss from discontinued operations for the nine months ended September 30, 2020 compared to the income from discontinued operations for the nine months ended September 30, 2019 was primarily due to the tax impacts of the sale of the Energy Services Disposal Group on June 1, 2020, the effect of which was compounded by lower book earnings in the nine months ended September 30, 2020. See Note 3 for further information. |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Sep. 30, 2020USD ($)site | Sep. 30, 2020USD ($)site | Sep. 30, 2020USD ($)site |
Purchase Obligations | |||
Remaining three months of 2020 | $ 224,000,000 | $ 224,000,000 | $ 224,000,000 |
2021 | 662,000,000 | 662,000,000 | 662,000,000 |
2022 | 496,000,000 | 496,000,000 | 496,000,000 |
2023 | 418,000,000 | 418,000,000 | 418,000,000 |
2024 | 340,000,000 | 340,000,000 | 340,000,000 |
2025 | 290,000,000 | 290,000,000 | 290,000,000 |
2026 and beyond | $ 1,817,000,000 | $ 1,817,000,000 | $ 1,817,000,000 |
Performance Guarantees & Product Warranties [Abstract] | |||
Number of surety bond obligations outstanding | 60 | 60 | 60 |
Performance guarantee obligations outstanding face amount | $ 568,000,000 | $ 568,000,000 | $ 568,000,000 |
Percentage of work yet to be completed on projects with open surety bonds | 21.00% | ||
Guarantor obligations, maximum exposure, undiscounted | 519,000,000 | 519,000,000 | $ 519,000,000 |
Minnesota and Indiana Gas Service Territories [Member] | |||
Legal, Environmental and Other Matters | |||
Liability recorded for environmental loss contingencies | $ 12,000,000 | $ 12,000,000 | 12,000,000 |
Minnesota and Indiana Gas Service Territories [Member] | Minimum [Member] | |||
Legal, Environmental and Other Matters | |||
Estimated remediation costs for the Minnesota sites | $ 7,000,000 | ||
Years to resolve contingency | 5 | ||
Minnesota and Indiana Gas Service Territories [Member] | Maximum [Member] | |||
Legal, Environmental and Other Matters | |||
Estimated remediation costs for the Minnesota sites | $ 54,000,000 | ||
Years to resolve contingency | 50 | ||
Indiana Gas Service Territory [Member] | |||
Legal, Environmental and Other Matters | |||
Environmental remediation number of sites with potential remedial responsibility | site | 26 | 26 | 26 |
SIGECO [Member] | |||
Legal, Environmental and Other Matters | |||
Environmental remediation number of sites with potential remedial responsibility | site | 5 | 5 | 5 |
CERC Corp [Member] | |||
Purchase Obligations | |||
Remaining three months of 2020 | $ 163,000,000 | $ 163,000,000 | $ 163,000,000 |
2021 | 486,000,000 | 486,000,000 | 486,000,000 |
2022 | 325,000,000 | 325,000,000 | 325,000,000 |
2023 | 271,000,000 | 271,000,000 | 271,000,000 |
2024 | 246,000,000 | 246,000,000 | 246,000,000 |
2025 | 220,000,000 | 220,000,000 | 220,000,000 |
2026 and beyond | $ 1,496,000,000 | 1,496,000,000 | 1,496,000,000 |
CERC Corp [Member] | CERC Senior notes 4.50% due 2021 [Member] | |||
Legal, Environmental and Other Matters | |||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||
CERC Corp [Member] | Minnesota and Indiana Gas Service Territories [Member] | |||
Legal, Environmental and Other Matters | |||
Liability recorded for environmental loss contingencies | $ 7,000,000 | 7,000,000 | 7,000,000 |
CERC Corp [Member] | Minnesota and Indiana Gas Service Territories [Member] | Minimum [Member] | |||
Legal, Environmental and Other Matters | |||
Estimated remediation costs for the Minnesota sites | $ 4,000,000 | ||
Years to resolve contingency | 30 | ||
CERC Corp [Member] | Minnesota and Indiana Gas Service Territories [Member] | Maximum [Member] | |||
Legal, Environmental and Other Matters | |||
Estimated remediation costs for the Minnesota sites | $ 32,000,000 | ||
Years to resolve contingency | 50 | ||
Indiana Electric Integrated [Member] | |||
Legal, Environmental and Other Matters | |||
Asset retirement obligation | 73,000,000 | 73,000,000 | $ 73,000,000 |
Indiana Electric Integrated [Member] | Minimum [Member] | |||
Legal, Environmental and Other Matters | |||
Estimated capital expenditure to clean ash ponds | 60,000,000 | 60,000,000 | 60,000,000 |
Indiana Electric Integrated [Member] | Maximum [Member] | |||
Legal, Environmental and Other Matters | |||
Estimated capital expenditure to clean ash ponds | 80,000,000 | 80,000,000 | 80,000,000 |
Minnehaha Academy Gas Explosion [Member] | |||
Legal, Environmental and Other Matters | |||
Contested amount of fines imposed | 200,000 | 200,000 | 200,000 |
Minnehaha Academy Gas Explosion [Member] | CERC Corp [Member] | |||
Legal, Environmental and Other Matters | |||
Contested amount of fines imposed | $ 200,000 | $ 200,000 | 200,000 |
CES natural gas related transactions [Member] | CERC Corp [Member] | |||
Performance Guarantees & Product Warranties [Abstract] | |||
Quarterly increase of fee received for retained CES guarantee exposure | 3.00% | ||
Quarterly increase of fee received for retained CES guarantee exposure | 1.00% | ||
Guarantee exposure replaced by third party | 68,000,000 | ||
Estimated Remaining Exposure | $ 73,000,000 |
Earnings Per Share (CenterPoi_3
Earnings Per Share (CenterPoint Energy) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Beneficial Conversion Feature | $ 32 | $ 0 | |||
Amortization of Beneficial Conversion Feature | $ 16 | $ 0 | 25 | 0 | |
Continuing Operations Numerator: | |||||
Income (loss) from continuing operations | 127 | 251 | (791) | 545 | |
Preferred stock dividend requirement | 36 | 29 | 102 | 88 | |
Amortization of Beneficial Conversion Feature | 16 | 0 | 25 | 0 | |
Undistributed earnings allocated to preferred shareholders (1) | [1] | 0 | 0 | 0 | 0 |
Income (loss) available to common shareholders from continuing operations - basic and diluted | 69 | 241 | (1,100) | 546 | |
Net income (loss) from Discontinued Operations | $ (6) | $ 19 | $ (182) | $ 89 | |
Denominator: | |||||
Weighted average common shares outstanding - basic | 544,811,000 | 502,228,000 | 525,160,000 | 501,986,000 | |
Weighted average common shares outstanding - diluted | 548,188,000 | 505,080,000 | 525,160,000 | 504,838,000 | |
Earnings (loss) per common share: | |||||
Basic earnings (loss) per common share - continuing operations | $ 0.14 | $ 0.44 | $ (1.75) | $ 0.91 | |
Basic earnings (loss) per common share - discontinued operations | (0.01) | 0.04 | (0.35) | 0.18 | |
Basic Earnings (Loss) Per Common Share | 0.13 | 0.48 | (2.10) | 1.09 | |
Diluted Earnings (Loss) Per Common Share | |||||
Diluted earnings (loss) per common share - continuing operations | 0.14 | 0.44 | (1.75) | 0.91 | |
Diluted earnings (loss) per common share - discontinued operations | (0.01) | 0.03 | (0.35) | 0.17 | |
Diluted Earnings (Loss) Per Common Share | $ 0.13 | $ 0.47 | $ (2.10) | $ 1.08 | |
Restricted Stock [Member] | |||||
Denominator: | |||||
Restricted stock (4) | [2] | 3,377,000 | 2,852,000 | 0 | 2,852,000 |
Common Stock [Member] | |||||
Amount of antidilutive shares excluded from computation of earnings per share | 3,377,000 | ||||
Series B Preferred Stock [Member] | |||||
Amount of antidilutive shares excluded from computation of earnings per share | 35,940,000 | 33,537,000 | 35,923,000 | 33,537,000 | |
Continuing Operations Numerator: | |||||
Preferred stock dividend requirement | $ 17 | $ 17 | $ 51 | $ 51 | |
Denominator: | |||||
Preferred Stock | [3] | 0 | 0 | 0 | 0 |
Series C Preferred Stock [Member] | |||||
Amount of antidilutive shares excluded from computation of earnings per share | 47,355,000 | 25,578,000 | |||
Continuing Operations Numerator: | |||||
Preferred stock dividend requirement | $ 7 | $ 0 | $ 14 | $ 0 | |
Denominator: | |||||
Preferred Stock | [4] | 0 | 0 | 0 | 0 |
Continuing Operations [Member] | |||||
Continuing Operations Numerator: | |||||
Income (loss) available to common shareholders from continuing operations - basic and diluted | $ 75 | $ 222 | $ (918) | $ 457 | |
[1] | There were no undistributed earnings to be allocated to participating securities for the three and nine months ended September 30, 2020. | ||||
[2] | 3,377,000 incremental common shares from assumed conversions of restricted stock have not been included in the computation of diluted earnings (loss) per share for the nine months ended September 30, 2020, respectively, as their inclusion would be anti-dilutive. | ||||
[3] | The computation of diluted earnings per common share outstanding for the three and nine months ended September 30, 2020 excludes 35,940,000 and 35,923,000 potentially dilutive shares from the denominator, respectively, because the shares would be anti-dilutive. The computation of diluted earnings per common share outstanding for the three and nine months ended September 30, 2019 excludes 33,537,000 and 33,537,000 potentially dilutive shares from the denominator, respectively, because the shares would be anti-dilutive. | ||||
[4] | The computation of diluted earnings per common share outstanding for the three and nine months ended September 30, 2020 excludes 47,355,000 and 25,578,000 potentially dilutive shares, respectively, of Series C Preferred Stock from the denominator because the shares would be anti-dilutive. |
Reportable Segments (Details)
Reportable Segments (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020USD ($)state | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)state | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | ||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 1,622 | $ 1,658 | $ 5,364 | $ 5,545 | ||
Equity in earnings from investment in Enable | (67) | 77 | (1,499) | 213 | ||
Net income (loss) | 127 | 251 | (791) | 545 | ||
Net income (loss) from Discontinued Operations | (6) | 19 | (182) | 89 | ||
Net income (loss) | 121 | 270 | (973) | 634 | ||
Assets | 32,705 | 32,705 | $ 35,529 | |||
Total Assets Classified as Held For Use, Current and Noncurrent | 32,705 | 32,705 | 33,565 | |||
Total Assets Classified as Held For Sale, Current and Noncurrent | 0 | 0 | 1,964 | |||
Enable Midstream Partners [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 596 | 699 | 1,759 | 2,229 | ||
Equity in earnings from investment in Enable | (67) | 77 | (1,499) | 213 | ||
Impairment of CenterPoint Energy's equity method investment in Enable | 0 | 0 | 1,541 | 0 | ||
Houston Electric T&D [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [1] | 828 | 859 | 2,186 | 2,313 | |
Equity in earnings from investment in Enable | 0 | 0 | 0 | 0 | ||
Net income (loss) | 157 | 185 | 281 | 315 | ||
Houston Electric T&D [Member] | Affiliates of NRG Energy, Inc. [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 243 | 231 | 573 | 547 | ||
Houston Electric T&D [Member] | Affiliates of Vistra Energy Corp. [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 128 | 83 | 301 | 196 | ||
Indiana Electric Integrated [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 157 | 165 | 414 | 388 | ||
Equity in earnings from investment in Enable | 0 | 0 | 0 | 0 | ||
Net income (loss) | $ 31 | 34 | $ (121) | 41 | ||
Natural Gas Distribution [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of States in which the Entity Performs Gas Delivery Services | state | 48 | 48 | ||||
Revenues | $ 560 | 541 | $ 2,519 | 2,629 | ||
Equity in earnings from investment in Enable | 0 | 0 | 0 | 0 | ||
Net income (loss) | 5 | 6 | 242 | 149 | ||
Midstream Investments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | [2] | 0 | 0 | 0 | 0 | |
Equity in earnings from investment in Enable | [2] | (67) | 77 | (1,499) | 213 | |
Net income (loss) | [2] | (62) | 50 | (1,165) | 124 | |
Corporate and Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 77 | 93 | 245 | 215 | ||
Equity in earnings from investment in Enable | 0 | 0 | 0 | 0 | ||
Net income (loss) | (4) | (24) | (28) | (84) | ||
Operating Segments [Member] | Houston Electric T&D [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | 11,296 | 11,296 | 11,264 | |||
Operating Segments [Member] | Indiana Electric Integrated [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | 3,142 | 3,142 | 3,168 | |||
Operating Segments [Member] | Natural Gas Distribution [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | 14,297 | 14,297 | 14,105 | |||
Operating Segments [Member] | Midstream Investments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | 805 | 805 | 2,473 | |||
Operating Segments [Member] | Corporate and Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | 3,165 | 3,165 | 2,555 | |||
Houston Electric [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 828 | 859 | 2,182 | 2,310 | ||
Net income (loss) | 157 | 185 | 277 | 312 | ||
Assets | 11,296 | 11,296 | 11,262 | |||
Houston Electric [Member] | Houston Electric T&D [Member] | Affiliates of NRG Energy, Inc. [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 231 | 547 | ||||
Houston Electric [Member] | Houston Electric T&D [Member] | Affiliates of Vistra Energy Corp. [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 83 | 196 | ||||
CERC Corp [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 426 | 420 | 1,920 | 2,158 | ||
Net income (loss) | (6) | (10) | 142 | 102 | ||
Net income (loss) from Discontinued Operations | 2 | 3 | (66) | 57 | ||
Net income (loss) | (4) | (7) | 76 | 159 | ||
Assets | 7,779 | 7,779 | 8,512 | |||
Total Assets Classified as Held For Use, Current and Noncurrent | 7,779 | 7,779 | 7,608 | |||
Total Assets Classified as Held For Sale, Current and Noncurrent | $ 0 | $ 0 | 904 | |||
CERC Corp [Member] | Natural Gas Distribution [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Number of States in which the Entity Performs Gas Delivery Services | state | 48 | 48 | ||||
Revenues | $ 422 | 415 | $ 1,910 | 2,152 | ||
Net income (loss) | 1 | 5 | 155 | 134 | ||
CERC Corp [Member] | Corporate and Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 4 | 5 | 10 | 6 | ||
Net income (loss) | (7) | $ (15) | (13) | $ (32) | ||
CERC Corp [Member] | Operating Segments [Member] | Houston Electric T&D [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | 0 | 0 | 0 | |||
CERC Corp [Member] | Operating Segments [Member] | Indiana Electric Integrated [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | 0 | 0 | 0 | |||
CERC Corp [Member] | Operating Segments [Member] | Natural Gas Distribution [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | 7,809 | 7,809 | 7,698 | |||
CERC Corp [Member] | Operating Segments [Member] | Midstream Investments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | 0 | 0 | 0 | |||
CERC Corp [Member] | Operating Segments [Member] | Corporate and Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | $ (30) | $ (30) | $ (90) | |||
[1] | Houston Electric T&D’s revenues from major external customers are as follows (CenterPoint Energy and Houston Electric): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Affiliates of NRG $ 243 $ 231 $ 573 $ 547 Affiliates of Vistra Energy Corp. 128 83 301 196 | |||||
[2] | Includes the impairment of CenterPoint Energy’s equity method investment in Enable of $1,541 million recorded during the nine months ended September 30, 2020 and CenterPoint Energy’s interest in Enable’s $225 million impairment on an equity method investment during the three and nine months ended September 30, 2020. |
Related Party Transactions (H_3
Related Party Transactions (Houston Electric and CERC) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | ||
Houston Electric [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Interest income (expense) (1) | [1] | $ 0 | $ 5 | $ 0 | $ 14 | |
Cash dividends paid to parent | 52 | 60 | 457 | 100 | ||
Cash contribution from parent | 0 | 0 | 0 | 590 | ||
Capital Distribution to Parent | 0 | 0 | 0 | 0 | ||
Property, plant and equipment from parent | [2] | 35 | 0 | 35 | 0 | |
Houston Electric [Member] | Operation and maintenance expense [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Net affiliate service charges (billings) | (4) | (3) | (14) | (7) | ||
Houston Electric [Member] | CenterPoint Energy [Member] | Operation and maintenance expense [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Corporate service charges | 48 | 38 | 142 | 132 | ||
CERC Corp [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Interest income (expense) (1) | [1] | 0 | 1 | 0 | 3 | |
Cash dividends paid to parent | 8 | 16 | 80 | 119 | ||
Cash contribution from parent | 0 | 0 | 0 | 0 | ||
Capital Distribution to Parent | 0 | 0 | 286 | 0 | ||
Property, plant and equipment from parent | [2] | 23 | 0 | 23 | 0 | |
CERC Corp [Member] | Operation and maintenance expense [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Net affiliate service charges (billings) | 4 | 3 | 14 | 7 | ||
CERC Corp [Member] | CenterPoint Energy [Member] | Operation and maintenance expense [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Corporate service charges | $ 52 | $ 31 | $ 156 | $ 106 | ||
Investments [Member] | Houston Electric [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Weighted average interest rate | 0.19% | 0.19% | 1.98% | |||
Investments [Member] | CERC Corp [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Weighted average interest rate | 0.19% | 0.19% | 1.98% | |||
Accounts and notes receivable (payable) - affiliate companies [Member] | Houston Electric [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Money pool investments (borrowings) (1) | [3] | $ 25 | $ 25 | $ 481 | ||
Accounts and notes receivable (payable) - affiliate companies [Member] | CERC Corp [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Money pool investments (borrowings) (1) | [3] | $ 0 | $ 0 | $ 0 | ||
[1] | Interest income is included in Other income (expense), net and interest expense is included in Interest and other finance charges on Houston Electric’s and CERC’s respective Condensed Statements of Consolidated Income. | |||||
[2] | Property, plant and equipment purchased from CenterPoint Energy at its net carrying value on the date of purchase. | |||||
[3] | Included in Accounts and notes receivable (payable)–affiliated companies on Houston Electric’s and CERC’s respective Condensed Consolidated Balance Sheets. |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Millions | May 06, 2020 | Apr. 01, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 01, 2020 | |
Class of Stock [Line Items] | ||||||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 58,051,121 | |||||||||||
Dividends declared per share | $ 0.1500 | $ 0.2875 | $ 0.5900 | $ 0.8625 | ||||||||
Preferred Stock Dividends and Other Adjustments [Abstract] | ||||||||||||
Preferred stock dividend requirement | $ 36 | $ 29 | $ 102 | $ 88 | ||||||||
Amortization of Beneficial Conversion Feature | 16 | 0 | 25 | 0 | ||||||||
Total income allocated to preferred shareholders | 52 | 29 | 127 | 88 | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||||
Beginning Balance | (84) | $ (98) | (105) | $ (108) | (98) | (108) | ||||||
Other comprehensive income (loss) from unconsolidated affiliates | 1 | (2) | (2) | (2) | ||||||||
Prior service cost (2) | [1] | 1 | 1 | |||||||||
Actuarial losses (2) | [1] | 2 | 2 | 5 | 6 | |||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | 1 | ||||||||||
Reclassification of net deferred loss from cash flow hedges (3) | [2] | 19 | 0 | |||||||||
Tax expense | (1) | 0 | (7) | (2) | ||||||||
Net current period other comprehensive income (loss) | 2 | (2) | 16 | 1 | ||||||||
Ending Balance | $ (82) | $ (84) | $ (107) | $ (105) | (82) | (107) | ||||||
Proceeds from Issuance of Common Stock | $ 672 | $ 0 | ||||||||||
Common Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Dividends paid per share | $ 0.5900 | $ 0.8625 | ||||||||||
Total dividends paid | $ 309 | $ 433 | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||||
Stock Issued During Period, Shares, New Issues | 41,977,612 | 0 | 0 | 42,000,000 | 0 | |||||||
Shares Issued, Price Per Share | $ 16.08 | |||||||||||
Proceeds from Issuance of Common Stock | $ 673 | |||||||||||
Series A Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock dividends declared | $ 30.6250 | $ 30.6250 | $ 61.2500 | $ 62.7813 | ||||||||
Dividends paid per share | $ 61.2500 | $ 62.7813 | ||||||||||
Total dividends paid | $ 49 | $ 50 | ||||||||||
Preferred Stock Dividends and Other Adjustments [Abstract] | ||||||||||||
Preferred stock dividend requirement | $ 12 | $ 12 | $ 37 | $ 37 | ||||||||
Series B Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock dividends declared | $ 17.5000 | $ 17.5000 | $ 52.5000 | $ 52.5000 | ||||||||
Dividends paid per share | $ 52.5000 | $ 52.5000 | ||||||||||
Total dividends paid | $ 51 | $ 51 | ||||||||||
Preferred Stock Dividends and Other Adjustments [Abstract] | ||||||||||||
Preferred stock dividend requirement | $ 17 | $ 17 | $ 51 | 51 | ||||||||
Series C Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Series C preferred stock | 725,000 | |||||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 47,354,670 | |||||||||||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | |||||||||||
Preferred stock dividends declared | $ 0.1500 | $ 0.3000 | ||||||||||
Dividends paid per share | $ 0.3000 | |||||||||||
Total dividends paid | $ 14 | |||||||||||
Preferred Stock Dividends and Other Adjustments [Abstract] | ||||||||||||
Preferred stock dividend requirement | $ 7 | 0 | 14 | 0 | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||||
Proceeds from Issuance of Convertible Preferred Stock | $ 724 | |||||||||||
Preferred Stock, Convertible, Conversion Price | $ 15.31 | |||||||||||
Preferred Stock, Convertible, Conversion Limit | 4.90% | |||||||||||
Preferred Stock, Convertible, Percent Outstanding Shares To Amend | 66 2/3% | |||||||||||
Houston Electric [Member] | ||||||||||||
Preferred Stock Dividends and Other Adjustments [Abstract] | ||||||||||||
Amortization of Beneficial Conversion Feature | 0 | 0 | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||||
Beginning Balance | 0 | (15) | (15) | (14) | (15) | (14) | ||||||
Other comprehensive income (loss) from unconsolidated affiliates | 0 | 0 | 0 | 0 | ||||||||
Prior service cost (2) | [1] | 0 | 0 | |||||||||
Actuarial losses (2) | [1] | 0 | 0 | 0 | 0 | |||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | 0 | ||||||||||
Reclassification of net deferred loss from cash flow hedges (3) | [2] | 19 | 0 | |||||||||
Tax expense | 0 | 0 | (4) | 0 | ||||||||
Net current period other comprehensive income (loss) | 0 | 0 | 15 | (1) | ||||||||
Ending Balance | 0 | 0 | (15) | (15) | 0 | (15) | ||||||
CERC Corp [Member] | ||||||||||||
Preferred Stock Dividends and Other Adjustments [Abstract] | ||||||||||||
Amortization of Beneficial Conversion Feature | 0 | 0 | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||||
Beginning Balance | 10 | $ 10 | 5 | $ 5 | 10 | 5 | ||||||
Other comprehensive income (loss) from unconsolidated affiliates | 0 | 0 | 0 | 0 | ||||||||
Prior service cost (2) | [1] | 0 | 0 | |||||||||
Actuarial losses (2) | [1] | 0 | 0 | 0 | 0 | |||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | 0 | ||||||||||
Reclassification of net deferred loss from cash flow hedges (3) | [2] | 0 | 0 | |||||||||
Tax expense | 0 | 0 | 0 | 0 | ||||||||
Net current period other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||||||||
Ending Balance | 10 | $ 10 | 5 | $ 5 | 10 | 5 | ||||||
Interest Rate Contract [Member] | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||||
Deferred gain (loss) from interest rate derivatives (1) | [3] | 0 | (2) | 0 | (3) | |||||||
Interest Rate Contract [Member] | Houston Electric [Member] | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||||
Deferred gain (loss) from interest rate derivatives (1) | [3] | 0 | 0 | 0 | (1) | |||||||
Interest Rate Contract [Member] | CERC Corp [Member] | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||||||
Deferred gain (loss) from interest rate derivatives (1) | [3] | $ 0 | 0 | $ 0 | $ 0 | |||||||
First Quarter 2020 [Member] | Common Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Declaration Date | Feb. 3, 2020 | |||||||||||
Record Date | Feb. 20, 2020 | |||||||||||
Payment Date | Mar. 12, 2020 | |||||||||||
Dividends paid per share | $ 0.2900 | |||||||||||
Total dividends paid | $ 145 | |||||||||||
First Quarter 2020 [Member] | Series A Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Declaration Date | Feb. 3, 2020 | |||||||||||
Record Date | Feb. 14, 2020 | |||||||||||
Payment Date | Mar. 2, 2020 | |||||||||||
Dividends paid per share | $ 30.6250 | |||||||||||
Total dividends paid | $ 25 | |||||||||||
First Quarter 2020 [Member] | Series B Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Declaration Date | Feb. 3, 2020 | |||||||||||
Record Date | Feb. 14, 2020 | |||||||||||
Payment Date | Mar. 2, 2020 | |||||||||||
Dividends paid per share | $ 17.5000 | |||||||||||
Total dividends paid | $ 17 | |||||||||||
Second Quarter 2020 [Member] | Common Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Declaration Date | Apr. 24, 2020 | |||||||||||
Record Date | May 21, 2020 | |||||||||||
Payment Date | Jun. 11, 2020 | |||||||||||
Dividends paid per share | $ 0.1500 | |||||||||||
Total dividends paid | $ 82 | |||||||||||
Second Quarter 2020 [Member] | Series B Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Declaration Date | Apr. 24, 2020 | |||||||||||
Record Date | May 15, 2020 | |||||||||||
Payment Date | Jun. 1, 2020 | |||||||||||
Dividends paid per share | $ 17.5000 | |||||||||||
Total dividends paid | $ 17 | |||||||||||
Second Quarter 2020 [Member] | Series C Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Declaration Date | [4] | Apr. 24, 2020 | ||||||||||
Record Date | May 21, 2020 | |||||||||||
Payment Date | Jun. 11, 2020 | |||||||||||
Dividends paid per share | $ 0.1500 | |||||||||||
Total dividends paid | $ 7 | |||||||||||
Third Quarter 2020 | Common Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Declaration Date | Jul. 29, 2020 | |||||||||||
Record Date | Aug. 20, 2020 | |||||||||||
Payment Date | Sep. 10, 2020 | |||||||||||
Dividends paid per share | $ 0.1500 | |||||||||||
Total dividends paid | $ 82 | |||||||||||
Third Quarter 2020 | Series A Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Declaration Date | Jul. 29, 2020 | |||||||||||
Record Date | Aug. 14, 2020 | |||||||||||
Payment Date | Sep. 1, 2020 | |||||||||||
Dividends paid per share | $ 30.6250 | |||||||||||
Total dividends paid | $ 24 | |||||||||||
Third Quarter 2020 | Series B Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Declaration Date | Jul. 29, 2020 | |||||||||||
Record Date | Aug. 14, 2020 | |||||||||||
Payment Date | Sep. 1, 2020 | |||||||||||
Dividends paid per share | $ 17.5000 | |||||||||||
Total dividends paid | $ 17 | |||||||||||
Third Quarter 2020 | Series C Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Declaration Date | Jul. 29, 2020 | |||||||||||
Record Date | Aug. 20, 2020 | |||||||||||
Payment Date | Sep. 10, 2020 | |||||||||||
Dividends paid per share | $ 0.1500 | |||||||||||
Total dividends paid | $ 7 | |||||||||||
First Quarter 2019 [Member] | Common Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Declaration Date | Dec. 12, 2018 | |||||||||||
Record Date | Feb. 21, 2019 | |||||||||||
Payment Date | Mar. 14, 2019 | |||||||||||
Dividends paid per share | $ 0.2875 | |||||||||||
Total dividends paid | $ 144 | |||||||||||
First Quarter 2019 [Member] | Series A Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Declaration Date | Dec. 12, 2018 | |||||||||||
Record Date | Feb. 15, 2019 | |||||||||||
Payment Date | Mar. 1, 2019 | |||||||||||
Dividends paid per share | $ 32.1563 | |||||||||||
Total dividends paid | $ 26 | |||||||||||
First Quarter 2019 [Member] | Series B Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Declaration Date | Dec. 12, 2018 | |||||||||||
Record Date | Feb. 15, 2019 | |||||||||||
Payment Date | Mar. 1, 2019 | |||||||||||
Dividends paid per share | $ 17.5000 | |||||||||||
Total dividends paid | $ 17 | |||||||||||
Second Quarter 2019 [Member] | Common Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Declaration Date | Apr. 25, 2019 | |||||||||||
Record Date | May 16, 2019 | |||||||||||
Payment Date | Jun. 13, 2019 | |||||||||||
Dividends paid per share | $ 0.2875 | |||||||||||
Total dividends paid | $ 145 | $ 144 | ||||||||||
Second Quarter 2019 [Member] | Series B Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Declaration Date | Apr. 25, 2019 | |||||||||||
Record Date | May 15, 2019 | |||||||||||
Payment Date | Jun. 3, 2019 | |||||||||||
Dividends paid per share | $ 17.5000 | |||||||||||
Total dividends paid | $ 17 | |||||||||||
Third Quarter 2019 | Common Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Declaration Date | Jul. 31, 2019 | |||||||||||
Record Date | Aug. 15, 2019 | |||||||||||
Payment Date | Sep. 12, 2019 | |||||||||||
Dividends paid per share | $ 0.2875 | |||||||||||
Third Quarter 2019 | Series A Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Declaration Date | Jul. 31, 2019 | |||||||||||
Record Date | Aug. 15, 2019 | |||||||||||
Payment Date | Sep. 3, 2019 | |||||||||||
Dividends paid per share | $ 30.6250 | |||||||||||
Total dividends paid | $ 24 | |||||||||||
Third Quarter 2019 | Series B Preferred Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Declaration Date | Jul. 31, 2019 | |||||||||||
Record Date | Aug. 15, 2019 | |||||||||||
Payment Date | Sep. 3, 2019 | |||||||||||
Dividends paid per share | $ 17.5000 | |||||||||||
Total dividends paid | $ 17 | |||||||||||
Previous Dividend or Distribution [Member] | Common Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Dividends declared per share | $ 0.2900 | |||||||||||
Revised Dividend or Distribution [Member] | Common Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Dividends declared per share | $ 0.1500 | |||||||||||
[1] | Amounts are included in the computation of net periodic cost and are reflected in Other income (expense), net in each of the Registrants’ respective Statements of Consolidated Income. | |||||||||||
[2] | The cost of debt approved by the PUCT as part of Houston Electric’s Stipulation and Settlement Agreement included unrealized gains and losses on interest rate hedges. Accordingly, deferred gains and losses on interest rate hedges were reclassified to regulatory assets or liabilities, as appropriate. | |||||||||||
[3] | Gains and losses are reclassified from Accumulated other comprehensive income into income when the hedged transactions affect earnings. The reclassification amounts are included in Interest and other finance charges in each of the Registrants’ respective Statements of Consolidated Income. Over the next twelve months estimated amortization from Accumulated Comprehensive Income into income is expected to be immaterial. | |||||||||||
[4] | Declaration date for dividends on Common Stock. The Series C Preferred Stock is entitled to participate in any dividend or distribution (excluding those payable in Common Stock) with the Common Stock on a pari passu, pro rata, as-converted basis. The per share amount reflects the dividend per share of Common Stock as if the Series C Preferred Stock were converted into Common Stock. |
Subsequent Events (CenterPoin_3
Subsequent Events (CenterPoint Energy) (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 03, 2020 | Oct. 29, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Nov. 06, 2020 | Nov. 02, 2020 | Dec. 31, 2019 | |
Subsequent Event [Line Items] | ||||||||||
Dividends declared per share | $ 0.1500 | $ 0.2875 | $ 0.5900 | $ 0.8625 | ||||||
Expected cash distribution from equity method investment | $ 109 | $ 226 | ||||||||
Series A Preferred Stock [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Preferred stock dividends declared | $ 30.6250 | 30.6250 | $ 61.2500 | $ 62.7813 | ||||||
Preferred stock outstanding (in shares) | 800,000 | 800,000 | 800,000 | |||||||
Series B Preferred Stock [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Preferred stock dividends declared | $ 17.5000 | $ 17.5000 | $ 52.5000 | $ 52.5000 | ||||||
Preferred stock outstanding (in shares) | 977,500 | 977,500 | 977,500 | |||||||
Series C Preferred Stock [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Preferred stock dividends declared | $ 0.1500 | $ 0.3000 | ||||||||
Preferred stock outstanding (in shares) | 725,000 | 725,000 | 725,000 | |||||||
Subsequent Event [Member] | Common Stock [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Dividends Payable, Date Declared | Oct. 29, 2020 | |||||||||
Dividends Payable, Date of Record | Nov. 19, 2020 | |||||||||
Dividends Payable, Date to be Paid | Dec. 10, 2020 | |||||||||
Dividends declared per share | $ 0.1500 | |||||||||
SharesIssuedUponConversion | 6,531,677 | |||||||||
Subsequent Event [Member] | Series B Preferred Stock [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Dividends Payable, Date Declared | Oct. 29, 2020 | |||||||||
Dividends Payable, Date of Record | Nov. 13, 2020 | |||||||||
Dividends Payable, Date to be Paid | Dec. 1, 2020 | |||||||||
Preferred stock dividends declared | $ 17.5000 | |||||||||
Subsequent Event [Member] | Series C Preferred Stock [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Dividends Payable, Date Declared | [1] | Oct. 29, 2020 | ||||||||
Dividends Payable, Date of Record | [1] | Nov. 19, 2020 | ||||||||
Dividends Payable, Date to be Paid | [1] | Dec. 10, 2020 | ||||||||
Preferred stock dividends declared | [1] | $ 0.1500 | ||||||||
Preferred stock outstanding (in shares) | 625,000 | |||||||||
PreferredStockSharesToBeConvertedToCommon | 100,000 | |||||||||
Common Units [Member] | Subsequent Event [Member] | Enable Midstream Partners [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Quarterly cash distribution, declaration date | Nov. 3, 2020 | |||||||||
Quarterly cash distribution, date of record | Nov. 17, 2020 | |||||||||
Quarterly cash distribution, distribution date | Nov. 24, 2020 | |||||||||
Quarterly cash distribution declared per share | $ 0.16525 | |||||||||
Expected cash distribution from equity method investment | $ 39 | |||||||||
Series A Preferred Units [Member] | Subsequent Event [Member] | Enable Midstream Partners [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Quarterly cash distribution, declaration date | Nov. 3, 2020 | |||||||||
Quarterly cash distribution, date of record | Nov. 3, 2020 | |||||||||
Quarterly cash distribution, distribution date | Nov. 13, 2020 | |||||||||
Quarterly cash distribution declared per share | $ 0.62500 | |||||||||
Expected cash distribution from cost method investment | $ 9 | |||||||||
[1] | The Series C Preferred Stock is entitled to participate in any dividend or distribution (excluding those payable in Common Stock) with the Common Stock on a pari passu, pro rata, as-converted basis. The per share amount reflects the dividend per share of Common Stock as if the Series C Preferred Stock were converted into Common Stock. |